Stablecoin developer Plasma has raised $24 million to create a new blockchain supporting Tether USDt.
Plasma Investments
The February funding round, amounting to $24 million, was led by venture firm Framework Ventures with participation from Bitfinex, Peter Thiel, and Tether CEO Paolo Ardoino.
Features of the New Blockchain
Plasma co-founder Paul Faecks stated that the new blockchain will be built on the Bitcoin network and offer zero-fee USDt transactions to users. The project aims for rapid transaction processing and settlement in the field of stablecoin trading. While users won't pay for transactions, services like Curve and Aave will be charged.
Stablecoin Market Competition
Tether's USDt remains the largest stablecoin by market capitalization, yet its dominance is slowly waning. Circle's USD Coin is strengthening its position with a market cap surpassing $56 billion. Other competitors, including Paxos and Crypto.com, are also taking steps to launch and promote their own stablecoins.
Plasma plans to accelerate the development of the stablecoin ecosystem as competition continues to grow. New initiatives and developments may provide users with more options and secure solutions.
