"Thiel-Backed Plasma Raises $20M for Bitcoin-Based Stablecoin Blockchain"

Plasma, a stablecoin-focused blockchain startup backed by PayPal co-founder Peter Thiel, has raised $20 million in a Series A funding round. The funding was led by crypto exchange Bitfinex and stablecoin issuer Tether (USDT), with participation from other investors.

Plasma is developing a Bitcoin-based blockchain specifically designed to address the challenges faced by stablecoins on legacy blockchains, such as high transaction fees, centralization issues, high transaction failure rates, and a lack of specialized features. The company aims to drive global stablecoin adoption and unlock trillions of dollars on-chain by providing a scalable, efficient, and secure foundation for the next generation of money movement.

The first product to be launched on Plasma's protocol will be USDT, the largest stablecoin by market capitalization. Backed by Bitfinex and USDT, Plasma enables zero-fee USDT transfers, making it the most efficient and scalable blockchain for stablecoin payments available. Plasma aims to capture the trillion-dollar stablecoin opportunity, starting with USDT, which commands nearly a 70% market share.

The funding round comes amidst growing interest in stablecoins from both traditional financial institutions and the public sector. Plasma's purpose-built blockchain is designed to address the unique needs of stablecoins and drive their adoption to the next level.