Plasma Raises $20 Million in Series A Funding Round for Bitcoin-Based Stablecoin Network

Plasma, a cryptocurrency platform backed by prominent investor Peter Thiel, has secured $20 million in its Series A funding round. The investment, led by venture capital firm Framework Ventures, brings the startup’s total venture capital raise to $24 million.

Investment Plans and Objectives

The fresh capital injection will be used to support the launch of Plasma’s testnet and mainnet, as well as expand the company’s presence in the remittances market. Additionally, the funds will be allocated towards initiatives targeting payments and decentralized finance (DeFi) ecosystems.

Plasma’s network is designed to operate as a sidechain on Bitcoin and will be fully compatible with the Ethereum Virtual Machine. The project aims to address key challenges in the DeFi ecosystem, including high fees, scalability, and security.

Key Features and Benefits

The project’s blockchain design prioritizes providing zero-fee transactions for Tether (USDT). This feature is expected to enhance the overall user experience and increase adoption rates.

“With strong growth in both supply and users, we are entering a new phase of mainstream adoption for stablecoins. To meet this challenge, it’s more important than ever to have secure, decentralized, and scalable infrastructure in place. Plasma is designed to provide these essential rails by leveraging Bitcoin as its security layer,”

Notable backers of Plasma include Tether’s CEO Paolo Ardoino, crypto traders Zaheer Ebtikar and Cobie, as well as prominent venture capitalist Peter Thiel. The startup’s previous funding round of $4 million was led by crypto exchange Bitfinex in October 2024. Other notable investors include DRW/Cumberland, Bybit, 6th Man Ventures, Flow Traders, and Nomura.

Market Implications and Future Outlook

Plasma’s innovative approach to addressing DeFi ecosystem challenges has significant implications for the future of stablecoins and cryptocurrency adoption. As the market continues to evolve, it is essential for investors and users to stay informed about the latest developments and trends.

For more news and updates on the cryptocurrency market, visit Global Crypto News.

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