Stablecoins are one of the biggest success stories from the blockchain industry. This blistering growth saw the total supply of stablecoins reach $247 billion as of May 2025, which is nearly 10% of all the US physical currency in circulation. 

The stablecoin that currently dominates this sector is Tether’s USDT, which controls 66% of market share. So when a new blockchain that’s purpose-built for stablecoin transactions and backed by Tether announced a $50 million public round, it’s no surprise that the round filled within five minutes.

In this article, we’ll dive into what Plasma is, the founders and investors backing Plasma, how Plasma’s blockchain architecture works and the roadmap of the stablecoin-focused blockchain. 

Key Takeaways:

• Plasma is a purpose-built Layer 1 blockchain designed to optimize stablecoin transactions with zero-fee USDT transfers and Bitcoin-linked security.

• Backed by Tether, Bitfinex, and prominent VCs, Plasma has raised over $75 million to build a high-speed, scalable payment and DeFi network.

• With EVM compatibility, a unique vault mechanism and a clear road map, Plasma aims to become the settlement layer of choice for stablecoin-powered finance.

What is Plasma?

Plasma is a Layer 1 (L1) blockchain designed from the ground up for stablecoins. The idea is that traditional blockchains aren't optimized for the unique demands of stablecoins. Therefore, creating a purpose-built, high-performance, scalable and secure blockchain for stablecoins could drive global stablecoin adoption to the next level and capture the trillion-dollar stablecoin opportunity. 

Plasma is being developed by a team of engineers and traders with experience at top-tier firms like Apple, Microsoft and Goldman Sachs, and is backed by both Framework Ventures and Bitfinex/Tether. Its strategy is to integrate directly with issuers, on-ramps and financial institutions so that stablecoins can flow seamlessly across borders and applications without encountering issues like high fees and low scalability that hinder existing networks.

Founders of Plasma

Plasma was co-founded by Paul Faecks and Christian Angermayer. Faecks serves as CEO. Before Plasma, he co-founded Alloy (an institutional crypto operations platform) in 2021, and he has extensive experience in crypto infrastructure. Angermayer, a German entrepreneur and investor, is known for founding Apeiron Investment Group and the biotech firm ATAI Life Sciences.

Investors and funding rounds

Plasma’s formidable market opportunity and talent have also drawn significant capital from major crypto personalities and venture capitalists. Notably, Paolo Ardoino of Tether/Bitfinex and later PayPal co-founder Peter Thiel were early backers, reflecting confidence from stablecoin and fintech veterans. The funding timeline for the project so far is as follows:

• October 2024: Undisclosed $3.5 million round led by Bitfinex.

• February 2025: A formal Seed/Series A raise of $24 million, co-led by Framework Ventures and Bitfinex/USDT0. The announcement listed stablecoin industry leaders DRW/Cumberland, Bybit, Flow Traders, 6thManVentures (6MV), IMC, Nomura and others as participants.

• May 2025: A strategic investment from Founders Fund (Peter Thiel’s venture firm)

• June 2025: A $50 million public token sale through Echo. As part of this launch, Plasma announced a vault mechanism that allows users to deposit stablecoins to earn the right to purchase the XPL token. The vault deposit currently stands at $1 billion. As Plasma has clarified, this doesn’t represent a $1 billion raise. The vault is, however, used to decide who will get the right to buy XPL, and the raise is still $50 million at a $500 million valuation.

How Plasma works

Plasma’s blockchain design blends high speed and Ethereum compatibility with Bitcoin-backed security. Key architectural points include the following:

Bitcoin sidechain design 

Plasma is technically a standalone blockchain, but it aligns itself with Bitcoin for security. A native, trust-minimized Bitcoin bridge periodically commits Plasma’s state roots onto Bitcoin. In other words, Plasma functions as a Bitcoin sidechain so that blocks can be periodically finalized on Bitcoin’s ledger.

Stablecoin payment features

Because Plasma is built from first principles for stablecoin use, its core features specifically target stablecoin usability. For example, Plasma allows gas fees to be paid in stablecoins, such as USDT or , rather than a separate fee token. An embedded oracle-based swap converts any whitelisted asset into the native fee token in the background, avoiding situations in which users can’t pay gas fees. Another innovation is zero-fee USDT transfers, which facilitate simple USDT payments without any fee.

Privacy support

Plasma is also researching confidential transactions. In deploying shielded transactions, Plasma aims to protect users’ financial histories by concealing transaction details, thereby enhancing privacy while maintaining security and compliance, in the hopes of making the chain appealing for users who value their financial privacy, such as high–net worth individuals or hedge funds.

Plasma use cases

Plasma is primarily targeting the broad expansion of stablecoins across crypto and traditional finance as follows:

• Plasma could serve as a next-generation payment rail for stablecoins. With 24/7, near-instant transfers and zero fees (for USDT), it can enable fast remittances, e-commerce checkout, payrolls and general money movement anywhere in the world.

• As an EVM-compatible chain optimized for stable assets, Plasma could become a hub for stablecoin DeFi. Projects such as lending platforms, stablecoin swaps and yield strategies can all benefit from Plasma’s low-cost, high-speed environment.

• With Tether being the dominant global stablecoin, Plasma plans to serve as a scalable settlement layer for Tether transfers.

• If and when Plasma launches confidential transactions, it could enable private stablecoin transfers. This would make Plasma the preferred chain for individuals and institutions seeking financial privacy. 

Road map and future outlook

Plasma’s immediate road map centers on launching a mainnet neta and forming ecosystem partnerships. According to its documentation, Plasma’s team plans to deploy the core system early, and then begin integrations with stablecoin issuers, on-ramps, liquidity providers, DeFi platforms and fintechs. The mainnet beta will include the PlasmaBFT consensus, and the EVM layer as a stable foundation. 

Looking further ahead, Plasma’s official communications emphasize growing the network’s use for payments, remittances, DeFi and personal financial solutions. For example, the $24M raise announcement notes plans to “accelerate development of our testnet as well as mainnet, and expand our ecosystem to support payments, remittances, DeFi and personal financial solutions.”

Ultimately, Plasma envisions a long-term future in which stablecoins power mainstream finance. The project’s progress is notable. Well-known founders, high-profile backers and substantial funding rounds signal confidence from the market. If successful, the chain will have the capacity to redefine the rails on which global digital money moves. Whether that vision materializes will depend upon the Plasma team’s execution, as well as its adoption by stablecoin issuers — and, of course, the competition.