Bitfinex has made a strategic investment in Plasma, a platform dedicated to payments, real-world assets (RWAs), and decentralized finance (DeFi) infrastructure centered on Bitcoin. The Bitfinex team announced this investment on Oct. 18, aiming to enhance the usage of Tether (USDT) on the Bitcoin network.

Introduction to Plasma

Plasma is an innovative platform targeting a zero-fee payment rail for USDT. This network allows users to send U.S. dollar-denominated assets globally with no fees, leveraging the security and decentralization of Bitcoin. Instead of using BTC as the primary payment asset, Plasma aims to utilize the advantages of USDT and other stablecoins, using its network as the execution layer.

Key Features of Plasma

  • Zero-Fee Payments: Users can transfer U.S. dollar-denominated assets worldwide without incurring fees.
  • Gas Fees with BTC: Plasma supports gas fee payments using BTC, thanks to its native UTXO support.
  • Hybrid Account Architecture: This feature allows users to unlock staking and other benefits on Bitcoin.
  • EVM Compatibility: The platform is compatible with the Ethereum Virtual Machine, broadening its utility.

Expanding Bitcoin’s Reach

Plasma not only addresses global payment challenges but also aims to boost the adoption of the Bitcoin network across RWAs and DeFi sectors. This strategic focus aligns with the increasing interest in Bitcoin’s potential beyond just a digital currency.

Bitfinex’s Perspective

“Bitfinex is excited to support the growing Bitcoin ecosystem with our investment in Plasma. With the uncertainty that covenants will come to fruition, it’s very important to explore different avenues to build on top of the most secure, decentralized, and resilient money and speech network ever built by humanity: Bitcoin.” – Paolo Ardoino, Bitfinex CTO

Backing from Key Investors

Plasma has garnered financial support from notable investors, including Christian Angermayer, founder of Apeiron Investment Group. Other significant backers include venture capital platforms Split Capital, Manifold, and Anthos Capital.

Stay informed with the latest updates on cryptocurrencies, investing, and finance. Explore more news on Global Crypto News.

#MachineLearning #DigitalCurrency

Post Views: 1