It is planning to set up a digital payments system in about a dozen countries by the first quarter of 2020.
Facebook is expected to outline plans in more detail this summer, and has already spoken to Bank of England governor Mark Carney.
The firm is also in talks with money transfer firms including Western Union as it looks for cheaper and faster ways for people without a bank account to send and receive money.
A small group of co-founders are expected to launch the Swiss-based association in the coming weeks.
What is crypto-currency?
Virtual currencies can be used to pay for things in the real world, such as a hotel room, food or even a house.
Digital tokens are held in online wallets, and can be sent anonymously between users.
Crypto-currencies run on blockchain technology. A blockchain is a ledger of blocks of information, such as transactions or agreements, that are stored across a network of computers.
This information is stored chronologically, can be viewed by a community of users, and is not usually managed by a central authority such as a bank or a government.
The concept was designed to ensure security and anonymity for users, by preventing tampering or hijacking of the network.