Bitcoins
- Stablecoin company Plasma raised US$24M to develop an EVM-compatible Bitcoin sidechain enabling fee-free USDT transactions.
- The funding round was led by Framework Ventures, with participation from Bitfinex, Peter Thiel, and Tether CEO Paolo Ardoino.
- Co-founder Paul Faecks emphasised the initiative aligns with global efforts to boost stablecoin adoption.
Stablecoin company Plasma has secured US$24M (AU$38M) in funding to develop a USDT-focused blockchain. The company is developing an EVM-compatible Bitcoin sidechain designed to facilitate fee-free transactions for Tether’s USDT stablecoin.
According to a Feb. 13 Fortune report, Framework Ventures led the funding round, which included participation from Bitfinex, Peter Thiel, and Tether CEO Paolo Ardoino.
Related: ETH Gains Despite Expert Warning on ETF Inflows vs True Dominance
Plasma To Offer Zero USDT Transaction Fees
According to co-founder Paul Faecks, Plasma’s new blockchain will be built on the Bitcoin network and offer zero-fee USDT transactions:
By leveraging Bitcoin as a foundation, zero-fee USD₮ 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.
Paul Faecks, Plasma co-founder
While users will not be charged for stablecoin transactions, service providers such as Curve and Aave will incur fees for interacting with the network.
Furthermore, Faecks stated that the project aligns with industry efforts to boost dollar-backed stablecoin adoption, particularly following US lawmakers introducing stablecoin bills to promote their growth.
With US President Donald Trump signing an executive order to promote the development and growth of dollar-backed stablecoins, we believe that stablecoins will play an important role in global US dollar dominance over the next decade.
Paul Faecks, Plasma co-founder
Related: VanEck Estimates $23 Billion Surge in Bitcoin Buying from State-Level Reserve Bills
This investment follows a US$3.5M (AU$5.54M) funding round led by Bitfinex in October 2024. USDT continues to be by far the largest stablecoin globally, with a market capitalisation of US$142.42B (AU$224B) out of a total stablecoin supply of US$219.71B (AU$346B).
José Oramas Read More