A stablecoin firm backed by veteran investor Peter Thiel is raking in tens of millions of dollars worth of funds during a recent fundraising event.
In a new thread on the social media platform X, Plasma – a company designing a Bitcoin (BTC)-based blockchain specifically tailored for stablecoins – says it has raised $24 million in a fundraising round led by crypto exchange Bitfinex and stablecoin issuer Tether (USDT).
According to Plasma, stablecoin activity on blockchains currently faces many challenges, including high transaction fees, centralization issues, high transaction failure rates, and a lack of specialized features to support the unique demands of stablecoins.
“Over the last few months, we’ve seen unprecedented levels of excitement about stablecoins, both from traditional financial institutions and the public sector. Yet, despite this explosion of interest and growth, the stablecoin market faces a major obstacle: legacy blockchains are limiting their rate of adoption…
Plasma is solving these challenges with a purpose-built blockchain that will drive global stablecoin adoption to the next level and unlock trillions of dollars onchain. Engineered from the ground up to address the unique needs of stablecoins, Plasma provides a scalable, efficient, and secure foundation for the next generation of money movement.”
The firm goes on to say that the first product available over its protocol will be USDT, the largest stablecoin by market cap.
“We aim to capture the trillion-dollar stablecoin opportunity starting with USDT, issued by Tether. USDT is the largest stablecoin worldwide and commands nearly a 70% market share.
Backed by Bitfinex and USDT0, Plasma enables zero-fee USDT transfers, making it the most efficient and scalable blockchain for stablecoin payments available.”
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