The last remnant of Facebook’s crypto project will shut down on September 1st

Diem’s ​​logo, formerly known as Libra, can be seen on a smartphone screen with a Facebook logo in the background.

Pavlo Gonchar | SOPA images | LightRocket via Getty Images

Meta plans to shut down its Novi digital wallet on September 1, just 11 months after the company formerly known as Facebook debuted it.

The company announced the upcoming closure on Novi’s website, informing customers that “the Novi pilot will end soon” and will not be available after this date.

Meta said Novi users should withdraw any remaining balance on their Novi accounts before the closure date. People can either transfer their remaining balance to their bank account or withdraw the digital money as cash if appropriate, the company said.

Novi users will no longer be able to access their accounts after September 1st, which means they will not be able to retrieve account information such as their transaction history.

The company released Novi last October in a so-called beta or trial version with the help of cryptocurrency exchange Coinbase. Coinbase acted as Meta’s “custodial partner” on the project, providing digital storage and security technologies to help the Novi app secure people’s funds, the crypto exchange said in a company blog post in October.

Back then, Meta introduced Novi as an easy way for people to send and receive money using cryptocurrency Paxos Dollar or USDP, stablecoin. At one point, Meta planned to issue and accept the Diem cryptocurrency, which was backed by a Facebook-led association in conjunction with the Novi wallet.

However, the Diem cryptocurrency project, which is overseen by the Meta-backed Diem Association, came under intense scrutiny from regulators, leading to its demise. The leader of the project, David Marcus, announced his departure from Facebook last November. In January, crypto-focused bank Silvergate bought all Diem-related intellectual property and assets from the Diem Association, a major setback for Meta.

“Although we received positive substantive feedback on the design of the network, it was clear from our dialogue with federal agencies that the project could not move forward,” Diem CEO Stuart Levey said in a statement at the time. “As a result, the best way forward was to sell the Diem Group’s assets, as we did to Silvergate today.”

Since then, stablecoins have come under intense scrutiny amid a broader downturn in the cryptocurrency market. The collapse of UST in May, which lost its peg to the dollar, worried investors and regulators that certain types of stablecoins might not have the support needed to redeem them in the event of a run.

Meta shares were flat at $160.00 in after-hours trading.