Facebook’s Novi Crypto Wallet Set For Pilot Launch With Coinbase and Paxos

Novi, Facebook’s crypto and digital asset wallet subsidiary, has officially announced that it has partnered with Coinbase, a leading U.S. crypto exchange; and Paxos, the financial institution and technology firm behind the Paxos Dollar stablecoin. This partnership will see the three firms collaborating to launch a pilot program for their integrated services.

The pilot program is now live in the U.S. and Guatemala, and is available on mobile app stores Google Play and Apple App Store. According to an announcement posted by Coinbase, the crypto exchange will be supporting Novi through its Coinbase Custody service, a platform that provides users with secure and fully segregated cold storage for managing private keys.

The pilot program will test out how Novi users may acquire Pax Dollar ($USDP) through their Novi accounts. User’s acquired USDP purchases will be held by Novi through Coinbase’s enterprise custodial service. With this, Novi users may transfer USDP between their respective accounts with near-instant transaction speeds. Coinbase currently manages over $180 billion in crypto and digital assets across its products and offerings, including institutional and enterprise-level services.

“We believe that in the future, every company will be a crypto company, including fintech platforms, banks, social media, gaming companies, and consumer brands. Our goal is to arm them with the best tools possible so their own users have a first-class experience and participate in the cryptoeconomy.” Coinbase stated.

Paxos’ USDP stablecoin is a regulated stablecoin issued by the Paxos Trust Company, its financial institution entity. Paxos says that it is fully regulated and compliant, and that the stablecoin is “100% backed by US dollars and cash equivalents.” Paxos further says that the collaboration for this Novi pilot program “represents a tide shift in digital assets, as it’s the first time that stablecoins are readily available in a consumer wallet outside of the crypto ecosystem."

"Today’s financial infrastructure is archaic, expensive, inefficient, and risky– supporting a system that leaves out more people than it lets in. Stablecoins can transform the financial landscape, but we need easy ways for people to access this new technology." Paxos stated in a blog announcement.

In an earlier report, CryptoDaily has covered how unconfirmed details of Facebook’s crypto holdings have circulated. Facebook’s Novi Wallet is an offshoot and rebrand of its Calibra digital wallet, which was later renamed to its current naming. David Marcus, head of Facebook Financial, has previously hinted at the launch of Novi within the year.

Notably, both the statements from Paxos and Coinbase have failed to mention the Diem Project, Facebook’s own cryptocurrency project. Diem is the rebranded name of Facebook’s initial foray into the crypto space, replacing Libra. According to details on Diem’s project site, it is being developed as a stablecoin based on an undisclosed fiat currency. The Diem Project is run as an open consortium, the Diem Association, which includes membership from several tech startups: LYFT, Uber, Shopify, and Coinbase, among others.

Diem’s design as a permissionless payment platform is still under review from regulators. Facebook claims that it intends to launch Novi alongside Diem once the latter "receives regulatory approval and goes live."

The pilot program is set to evaluate Novi’s core functionalities and test its operational capabilities in terms of customer service and compliance. The crypto wallet is also undergoing further development for interoperability with other digital wallets and blockchain-based payments platforms.

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Publication date: 
10/19/2021 - 17:15
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