Tether, the leading stablecoin, controls 70% of the market and made $13.7 billion in profits last year. To capitalize on this, Paul Faecks, co-founder of Plasma, is developing a blockchain specifically for Tether, aiming to offer zero-fee Tether transactions and attract stablecoin users.
Plasma to Launch Tether-Specific Blockchain
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.
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.
Plasma Raises $24 Million In Funding Round
On Thursday, the company revealed it raised $24 million in its initial funding round. The investment was led by Framework Ventures, with backing from crypto exchange Bitfinex, venture capitalist Peter Thiel, and Tether CEO Paolo Ardoino. 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.
Tether is available on blockchains like Solana, Tron, Polkadot, and Bitcoin via the Omni Layer, which adds extra capabilities. However, Paul Faecks explained that Plasma makes transactions faster and more affordable by focusing solely on stablecoins. By removing features like NFT trading, memecoins, airdrops, and decentralized voting, Plasma can more efficiently handle the high volume of stablecoin transactions, he noted.
Stablecoins, A Dominant Force
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.
