When will the Plasma project's blockchain network launch, and how is the platform connected to Tether?
The market capitalization of Tether's USDT stablecoin has approached a record high of $150 billion, according to Defillama. In addition to becoming more than just a trading instrument on crypto exchanges, the stablecoin has become a multifunctional tool for everyday use. It has also become a source of income not only for the issuer (Tether) but also for entire blockchain networks that earn revenue from transaction fees for USDT. However, other mechanisms for generating profits, different from the usual collection of fees, may soon emerge — one such option is offered by the Plasma blockchain.
The platform is scheduled to launch on May 6, but at the end of April, Tether began testing the project's solutions with a large African payment startup, Yellow Card, in more than 20 countries. Around the same time, Plasma founder Paul Fex and Tether CEO Paolo Ardoino spoke at a panel discussion in Dubai as part of the Token2049 crypto conference, “The Future of Stablecoins in Global Payments.”
Plasma developers are creating a blockchain for fast, commission-free USDT transfers. This is achieved by redistributing revenue within the ecosystem: the network itself does not charge users, but earns money from integrated services in the decentralized finance (DeFi) sector, such as Curve, Aave, and Ethena, which will operate on Plasma.
This approach differs significantly from traditional revenue models because the income of network node operators who process transactions depends on the number of transactions in a given blockchain. This is a characteristic feature of blockchain networks, where virtually any transaction requires the user to pay fees that go to independent operators as payment for conducting the transaction.
For context, the capitalization of USDT issued on the Tron blockchain is $71.4 billion, while on Ethereum it exceeds $64.7 billion, which is more than 91% of all USDT issued on other networks. And the total number of transactions with USDT on Tron is tens of times higher than on Ethereum. For example, in the first quarter of 2025, Tron processed about 130 million USDT transactions. Meanwhile, Ethereum recorded only 11.1 million.
Over the past few years, Tron has been considered one of the cheapest blockchains for USDT token transactions, offering an economical alternative to USDT transfers via Ethereum. And if we look at the cumulative revenue figures for a particular blockchain from the beginning of 2025 to May 6, according to Token Terminal, Tron is one of the most profitable crypto projects after Tether. For example, over the past month, the figure exceeded $8.5 million, while Ethereum's was around $106,000.
What is the Plasma project?
The Plasma crypto project is essentially a competitor to Tron in terms of USDT usage. Although Tether's management previously stated in mid-2024 that it was not interested in launching its own blockchain project, the situation may change over time.
“We are very knowledgeable about technology. In the future, blockchain will become almost a commodity. Launching it independently may not be the right move. There are very good solutions,” Tether CEO Paolo Ardoino told Bloomberg in August 2024.
However, in October 2024, Plasma developers raised $3.5 million from the Bitfinex crypto exchange and several venture capital funds. At the time, they stated that the project's goal was to create a fast tool for dollar payments based on Bitcoin, which could also be used to work with DeFi and real-world assets (RWA).
And in February 2025, Plasma, a company developing infrastructure for the USDT stablecoin, raised $24 million in an investment round, according to Fortune. The round was led by Framework Ventures, with other investors including the Bitfinex exchange, billionaire Peter Thiel, and Paolo Ardoino.
It is noteworthy that in February 2025, Tron founder Justin Sun also announced a feature for sending USDT without fees.
How the Plasma project works
Plasma uses Bitcoin technology but is also compatible with the Ethereum Virtual Machine (EVM). Developers have adapted Bitcoin's transaction recording system, adding accounts similar to those in Ethereum. This, in particular, opens up the possibility of passive income (staking) for Bitcoin holders, as well as full compatibility with EVM.
The Byzantine Fault Tolerance (BFT) mechanism used in blockchains such as Solana and Ethereum is used as the consensus mechanism. However, Plasma has introduced its own modification of BFT called HotStuff, which is a faster version of traditional BFT designed specifically for high-volume stablecoin transactions.
Byzantine fault tolerance (BFT) is a property of a computer system or dispute resolution algorithm where consensus is achieved regardless of the failure or malicious actions of some of its participants.
According to the developers, the Plasma network is capable of processing up to 2,000 transactions per second for USDT transfers. According to Zahir Ebtikar, founder and chief investment officer of Split Capital (a Plasma investor), these figures are achieved because the network has reduced the functionality of the blockchain, focusing on minimizing fees for stablecoin users.
