Plasma Raises $20M for Bitcoin-Based Stablecoin Network

Plasma, a crypto startup focused on creating a Bitcoin-based blockchain specifically for stablecoins, has raised $20 million in a funding round led by Framework Ventures. This significant investment will support the launch of Plasma's testnet and mainnet and facilitate its expansion into areas like remittances, payments, and decentralized finance (DeFi) applications. Plasma's initiative aims to address the high fees and scalability constraints that stablecoins face on current blockchains by leveraging Bitcoin's security to enable zero-fee USDT transactions. Despite the dominance of blockchains like Ethereum and Tron in stablecoin activity, Plasma's sidechain will offer compatibility with the Ethereum Virtual Machine (EVM) to support decentralized finance. Stablecoins have become a major component in the crypto economy, with over $220 billion in supply, being increasingly used for everyday transactions and savings. Early supporters of Plasma include Bitfinex, Tether CEO Paolo Ardoino, venture capitalist Peter Thiel, and crypto traders Cobie and Zaheer Ebtikar.