The post Plasma Raises $20M to Advance Bitcoin-Based Blockchain for Stablecoins appeared first on Coinpedia Fintech News
In a latest development, Plasma, a crypto startup creating a Bitcoin-based blockchain for stablecoins, raised $20 million to advance its development. The funding, led by Framework Ventures, will help launch Plasma’s testnet and mainnet, and support its expansion into remittances, payments, and DeFi applications.
Notably, the investment comes after a $4 million round backed by early supporters, including Bitfinex, Tether CEO Paolo Ardoino, venture capitalist Peter Thiel, and crypto traders Cobie and Zaheer Ebtikar.
Plasma is designed to be a sidechain on the Bitcoin blockchain, with fully compatible with the Ethereum Virtual Machine (EVM), which powers much of decentralized finance. The team aims to solve problems like high fees and scalability issues faced by stablecoins on other blockchains, using Bitcoin’s security and enabling zero-fee USDT transactions.
Besides, Plasma plans to launch a blockchain designed specifically for Tether in the Q2 of this year, led by Framework Ventures. Plasma’s blockchain will provide zero-fee USDT transactions.
Lately, Stablecoins have taken the crypto world by storm, surpassing $220 billion in supply and becoming a go-to for everyday payments and savings. While Bitcoin is the longest-running blockchain, most of the stablecoin activity happens on newer chains like Ethereum, Tron and Solana.
“Stablecoins are the clear winner in blockchain adoption, yet they’re treated as second-class citizens on current blockchains,” Paul Faecks, founder and CEO of Plasma, remarked in a statement. “By leveraging Bitcoin as a foundation, zero-fee USDT transfers, alongside a purpose-built ecosystem and infrastructure for stablecoins with deep liquidity, Plasma creates the most secure, scalable, and efficient blockchain for stablecoins on the market,” he added.