Plasma, a crypto startup developing a Bitcoin-based blockchain optimized for stablecoins, has secured $20 million in funding to accelerate its network development. The project aims to enhance stablecoin adoption through a Bitcoin sidechain enabling zero-fee USDT transactions.
Funding and Backers
- Lead Investor: Framework Ventures spearheaded the $20 million round.
- Use of Funds: Supports testnet/mainnet launches and expansion into remittances, payments, and DeFi applications.
- Early Investors: Includes Bitfinex, Tether CEO Paolo Ardoino, Peter Thiel, and traders Cobie and Zaheer Ebtikar (Split Capital).
Why Stablecoins Need Bitcoin
Stablecoins dominate crypto with a $220B+ market cap, yet most activity occurs on Ethereum, Tron, and Solana. Plasma addresses key challenges:
- High Fees: Eliminates transaction costs for USDT transfers.
- Scalability: Leverages Bitcoin’s security while supporting EVM compatibility for DeFi interoperability.
👉 Discover how Bitcoin sidechains revolutionize stablecoin efficiency
Plasma’s Vision
Paul Faecks, Plasma CEO:
"Stablecoins are blockchain’s adoption leaders but lack dedicated infrastructure. Plasma combines Bitcoin’s security with zero-fee transfers and deep liquidity to create the optimal stablecoin ecosystem."
FAQs
How does Plasma differ from other stablecoin networks?
Plasma is a Bitcoin sidechain with EVM compatibility, offering fee-less USDT transactions and prioritizing scalability.
What are Plasma’s primary use cases?
Remittances, payments, and DeFi applications requiring fast, low-cost stablecoin transactions.
Who are Plasma’s key investors?
Framework Ventures, Bitfinex, Paolo Ardoino, and Peter Thiel are among its backers.
Future Roadmap
- Testnet Launch: Initial rollout for developer engagement.
- Mainnet Deployment: Full-scale stablecoin transactions with Bitcoin-backed security.
👉 Explore Bitcoin’s role in stablecoin innovation
Plasma’s integration of Bitcoin’s robustness with stablecoin efficiency could redefine cross-border payments and DeFi liquidity. The project’s focus on zero-fee transfers positions it as a contender in the evolving stablecoin landscape.
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