Plasma, a crypto startup building a Bitcoin-based blockchain designed specifically for stablecoins, raised $20 million to further its development, the company said on Thursday.
The fundraising round was led by Framework Ventures and will support Plasma’s testnet and mainnet launches, as well as its expansion into remittances, payments and DeFi applications, the team said.
The investment followed a $4 million round with early backers including Bitfinex, stablecoin issuer Tether’s CEO Paolo Ardoino, venture capitalist Peter Thiel and prominent crypto traders Cobie and Zaheer Ebtikar, also known as Split Capital.
Stablecoins have become a dominant force in crypto surpassing $220 billion in supply, and are increasingly used 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.
Plasma is designed to be a sidechain on the…
