Plasma Secures $20 Million in Funding for Bitcoin-Based Stablecoin Blockchain
Plasma, an innovative crypto startup focused on developing a blockchain infrastructure based on Bitcoin specifically tailored for stablecoins, has successfully raised $20 million in a recent funding round, the company announced on Thursday. This significant investment will propel Plasma’s efforts in launching both its testnet and mainnet, alongside expanding into various sectors such as remittances, payments, and decentralized finance (DeFi) applications.
The funding round was spearheaded by Framework Ventures and comes on the heels of an earlier $4 million investment that included notable early backers like Bitfinex, Paolo Ardoino, CEO of stablecoin issuer Tether, venture capitalist Peter Thiel, and well-known crypto traders Cobie and Zaheer Ebtikar (also recognized as Split Capital).
Stablecoins have emerged as a powerful component of the cryptocurrency ecosystem, boasting a total supply that has surpassed $220 billion. Their use is increasingly becoming commonplace for everyday transactions and savings. Although Bitcoin holds the title of the longest-running blockchain, the majority of stablecoin activity is concentrated on newer platforms such as Ethereum, Tron, and Solana.
Plasma aims to establish itself as a sidechain on the Bitcoin blockchain, ensuring full compatibility with the Ethereum Virtual Machine (EVM), which is integral to a significant portion of decentralized finance activities. The Plasma team is committed to tackling the challenges that stablecoins currently face on existing blockchains, such as high transaction fees and scalability limitations, by harnessing Bitcoin’s robust security features and enabling zero-fee USDT transactions.
“Stablecoins are undeniably emerging as the frontrunners in blockchain adoption; however, they are often relegated to a secondary status on existing blockchains,” stated Paul Faecks, founder and CEO of Plasma. “By utilizing Bitcoin as our foundational layer, coupled with zero-fee USDT transfers and a specially designed ecosystem and infrastructure for stablecoins that boasts deep liquidity, Plasma is positioned to create the most secure, scalable, and efficient blockchain for stablecoins available today.”
