Key Notes

Key Notes:

The funding round was led by Framework Ventures, with contributions from Bitfinex, Peter Thiel, and Paolo Ardoino.Unlike Solana or Tron, Plasma’s blockchain strips away non-essential features to focus on fast, cost-free transactions.Currently, the stablecoin market is dominated by Tether with the company controlling more than 70% of the market share.

Plasma, a Web3 startup focused on stablecoin transactions, has secured $24 million in a series A funding round to develop a blockchain dedicated to stablecoins like Tether USD USDT $1.00 24h volatility: 0.1% Market cap: $142.50 B Vol. 24h: $21.07 B . This capital injection aims to accelerate the development of Plasma’s Bitcoin sidechain network, designed to enhance stablecoin adoption by enabling zero-fee transactions.

While Plasma’s blockchain will run on Bitcoin, it will not rely on its congestion-prone network. Instead, the protocol will operate using its own consensus mechanism, designed to optimize security, scalability, and transaction validation specifically for stablecoin transfers.

Unlike general-purpose blockchains like Ethereum, Solana, Tron, and Polkadot, Plasma will remove features such as non-fungible tokens (NFTs), staking, and governance, focusing entirely on seamless and rapid stablecoin transactions.

According to an official announcement on Thursday, the new network is set to go live in the second quarter of 2025, offering users a highly efficient system tailored for stablecoin operations.

The fund will be used to support the development of the upcoming protocol, both during its testnet and mainnet launch.

Additionally, the company plans to allocate part of the money to an initiative aimed at expanding the company’s presence in the remittances market. Plasma also targets the payments and decentralized finance (DeFi) ecosystems, aiming to streamline cross-border transactions and enhance financial inclusion.

The $24 million funding round was led by Framework Ventures, with participation from Bitfinex, billionaire investor Peter Thiel, and Tether CEO Paolo Ardoino.

The latest fundraising comes at a time the stablecoin market continues to attract major players beyond Tether. Recently, leading blockchain infrastructure provider Ripple has entered the space, introducing its own native stablecoin called . The firm aims to compete with established stablecoins like USDT and USDC $1.00 24h volatility: 0.0% Market cap: $57.09 B Vol. 24h: $3.14 B .

Additionally, the US state of Wyoming has launched its own state-backed stablecoin, signaling broader institutional interest in the sector. As of 2024, the total stablecoin circulation has reached a record $169 billion, reflecting the rising demand for digital dollar alternatives.

Tether remains the dominant force in the industry, controlling 70% of the total stablecoin supply. In 2024 alone, the company reported $13.7 billion in profit, with its reserves surpassing $7 billion by Q4. However, the increasing competition and regulatory scrutiny may impact its long-term strategy.

While stablecoins have gained significant traction worldwide, particularly in emerging markets, their adoption in the United States remains complex due to regulatory hurdles. On February 4, a bipartisan group of US senators introduced legislation aimed at creating a comprehensive stablecoin regulatory framework.

Tennessee Republican Senator Bill Hagerty emphasized that the bill would provide “a safe and pro-growth regulatory framework” to foster innovation and align with President Donald Trump’s vision of making the US “the world capital of crypto.”

Meanwhile, two other legislative proposals — the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act — seek to impose stricter compliance requirements.

Analysts at JPMorgan have reported that only 66% of Tether’s assets comply with the STABLE Act’s rules, while 83% meet the GENIUS Act’s requirements. These compliance ratios have been declining as Tether’s circulating supply grows.

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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.

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