• Facebook launched its crypto service via its Novi ewallet yesterday.
  • Instead of using its own cryptocurrency Diem, Novi will use USDP, a stablecoin issued by Paxos and its stablecoin-as-a-service.
  • USDP differs from Tether, a more well-known stablecoin, in key two areas: a) issuer Paxos is licensed by US authorities b) USDP is 100% backed by cash vs Tether's approx 4% backed by actual dollars.
  • Paxos also powers PayPal's cryptocurrency services, and has recently obtained a coveted US bank charter.
  • Although Paxos has custodian (ie banking) services, the custody of  USDP on behalf of Novi will be provided by Coinbase Custody.
  • Novi is being made available in the US and Guatemala. To allow USDP to be cashed out in Guatemala, Novi partners with Remitly.