#Plasma , a blockchain dedicated to stablecoins, has successfully raised $24 million in seed and Series A funding on February 13. The funds will be used to develop testnet, mainnet, and expand payment solutions, remittances, DeFi, and personal finance tools to optimize the stablecoin user experience.

Details of Funding Rounds

  • Seed round ($4 million): Participation included Bitfinex, Tether CEO Paolo Ardoino, Peter Thiel, Cobie and Zaheer Ebtikar (Split Capital).

  • Series A Round ($20M): Framework Ventures and Bitfinex/USD₮0 led, joined by DRW/Cumberland, Bybit, Flow Traders, 6th Man Ventures, IMC, Nomura and Karatage.

Stablecoins and the Booming Market

Stablecoins are increasingly becoming the backbone of the blockchain ecosystem, with a total supply exceeding $224 billion and transaction volumes reaching trillions of dollars per month. Thanks to fast transaction speeds, low fees, and 24/7 operation on the blockchain, stablecoins are gradually replacing traditional currencies in digital transactions.

  • Stablecoins are not only attracting retail investors but also receiving strong attention from governments and large financial institutions.

  • A series of positive developments are boosting the position of stablecoins in the market, such as:

    • Stripe spends $1.1 billion to acquire #BRIDGE – a startup specializing in stablecoin payments.

    • US President Donald Trump signs executive order promoting stablecoins pegged to the USD.

    • David Sacks, crypto and AI policy advisor at $TRUMP , asserts that stablecoins are a tool to maintain the global position of the USD.

Current Problems and Solutions of Plasma

Despite the strong growth of stablecoins, the current blockchain infrastructure still has many limitations:

  • High transaction fees, especially on $ETH .

  • Network congestion, leading to high transaction failure rates.

  • Lack of specialized features to support #stablecoin effectively.

Plasma was born to thoroughly solve the above problems by becoming the most optimal blockchain specifically for stablecoins.

  • Founded by Paul Faecks and Christian Angermayer, Plasma offers a stable, low-cost, fully EVM-compatible infrastructure that makes it easy to integrate with the existing DeFi ecosystem.

  • As a Bitcoin sidechain, Plasma features advanced and highly secure technology, such as:

    • Trust-minimized BTC bridge, allowing interaction with the Bitcoin network without the need for a middleman.

    • Store state root on Bitcoin, ensuring data transparency and integrity with strong security layer of $BTC .

    • Private consensus mechanism and EVM compatible execution layer, optimizing processing speed and reducing transaction costs.

Ambition to Dominate the Stablecoin Market

Plasma aims to tap into the trillion-dollar potential in the stablecoin space, starting with USDT – the world’s largest stablecoin with nearly 64% market share.

  • Powered by Bitfinex and USD₮0, Plasma will offer completely free USDT trading, enabling it to become the most optimal stablecoin payment solution on the market.

  • Tether CEO Paolo Ardoino stated:

    “Stablecoins are entering a phase of mass adoption. To support this growth, a secure, decentralized, and scalable infrastructure is needed. Plasma is the solution, leveraging Bitcoin as a security layer.”

Risk Warning

Investing in crypto is always high risk and not suitable for everyone. Plasma is on the rise and has great potential, but investors need to be cautious and do thorough research before making a decision.