Tether-Focused Blockchain Stable Raises $28 Million in Seed Round to Boost USDT Adoption

A Tether-focused Layer 1 blockchain project has raised $28 million in a seed funding round to advance the adoption and utility of the USDT stablecoin. The blockchain, known as Stable, is designed specifically for stablecoins and aims to address inefficiencies associated with using stablecoins on general-purpose blockchains. The funding round was co-led by Bitfinex and Hack VC, with participation from Franklin Templeton, eGirl Capital, Mirana, Castle Island Ventures, Susquehanna International Group, Nascent, and Blue Pool Capital. Key angel investors and advisors include Bryan Johnson (Braintree) and Divesh Makan (Iconiq Capital) [1].

The seed round, which began in the previous month and closed this month, was structured as a combination of a simple agreement for future equity (SAFE) and token warrants. The post-money valuation and whether the full $28 million was raised in a single tranche or over earlier stages were not disclosed. Bitfinex, which has been an early backer, played a significant role in incubating the project from its inception [1].

The fundraising follows the recent passage of the GENIUS Act in the U.S., which aims to provide regulatory clarity for stablecoins and facilitate the development of digital payments infrastructure. Paolo Ardoino, CEO of Tether and CTO of Bitfinex, emphasized the U.S. shift from a legalistic approach to one that offers clear regulatory guidelines for institutions, enabling them to harness the potential of assets like USDT [1].

According to Joshua Harding, Founder and CEO of Stable, the new blockchain is optimized for stablecoin transactions, offering low fees, high throughput, and guaranteed finality. Unlike general-purpose blockchains, which prioritize programmability and composability, Stable is tailored for real-world payments and remittances. USDT functions as the native gas token, allowing free transfers at the protocol level [1].

The project is positioned as a competitor to existing stablecoin networks by offering enhanced throughput, lower fees, and seamless integration with DeFi platforms. With USDT being the largest stablecoin by market capitalization, the initiative aims to leverage its widespread adoption to drive demand for its underlying blockchain. The funding will support ecosystem expansion, scalability improvements, and the development of tools to facilitate broader USDT usage across DeFi, remittances, and institutional markets [1].

Stable’s development roadmap includes a phased launch. Phase 1 is already underway, featuring USDT as native gas and sub-second block times. Phase 2, scheduled for later this year, will introduce a USDT aggregator and guaranteed blockspace. Phase 3, focused on developer tools and ecosystem growth, is set for 2026. The mainnet is expected to launch in late Q3 or early Q4 2025 [1].

The team currently consists of 27 members, and Harding plans to expand it further. The project is also considering best practices for decentralizing the network through the potential launch of a native token. As the project moves forward, key challenges include attracting developers, ensuring security and scalability, and navigating the evolving regulatory environment [1].

The investment reflects growing interest in stablecoin infrastructure, particularly as regulatory frameworks like the GENIUS Act provide clarity and foster innovation. The emergence of Tether-focused infrastructure could intensify competition with existing Layer 1 protocols, especially as major stablecoin issuers seek to expand their influence beyond token issuance into the foundational layer of the blockchain ecosystem [1].

Recent developments in the stablecoin and DeFi space, such as Binance’s launch of Treehouse and Coinbase’s partnership with JPMorgan, underscore the growing convergence of traditional and digital finance. As the regulatory environment shifts in favor of innovation, the success of projects like Stable will depend on technical execution, strategic partnerships, and ecosystem growth [1][4].

[1] https://www.theblock.co/post/364952/tether-focused-layer-1-stable-raises-28-million-seed-round-to-boost-usdt-adoption?utm_source=rss&utm_medium=rss

[2] https://seekingalpha.com/article/4805347-genius-act-stablecoins-web3-investing-intelligence-economy

[3] https://www.ainvest.com/news/tron-surges-0-32-nasdaq-listing-wewake-leads-presale-wallet-free-onboarding-2507/

[4] https://www.ainvest.com/news/binance-launches-treehouse-trading-july-29-22-00-beijing-time-12-5m-tree-airdrop-750k-incentive-program-2507/