Plasma, a startup focused on creating a Bitcoin sidechain for stablecoin use, recently announced it has raised $20 million from a series A funding round led by Framework Ventures. This follows a previous $4 million seed round that included early investments from notable figures such as Peter Thiel, Paolo Ardoino of Tether, and Bitfinex.

The aim of this fundraising is to enhance the handling of stablecoin transactions while also allowing for zero-fee USDT transfers, utilizing the capabilities of the Bitcoin blockchain.

Key points to note:

• Plasma plans to use the funds for launching its testnet and mainnet and expanding its services into areas like remittances and DeFi applications.
• The stablecoin market is growing rapidly, now surpassing $220 billion in supply, with an increasing focus on efficient payment solutions.

Paul Faecks, CEO of Plasma, expressed, “Stablecoins are the clear winner in blockchain adoption, yet they’re treated as second-class citizens on current blockchains. By leveraging Bitcoin, we can ensure secure, scalable, and efficient blockchain solutions for stablecoins.”