Cap, a protocol focusing on yield-bearing stablecoins, announced on Monday that it has secured $11 million in funding from notable financial institutions such as Franklin Templeton and Triton Capital.

The funding, which follows a recently concluded $8 million seed round, will be directed towards developing Cap’s stablecoin engine, anticipated to launch later this year. Previously, Cap had raised $3 million in an earlier fund raise.

Stablecoins, as defined, are cryptocurrencies tied directly to traditional assets, specifically the U.S. dollar. Cap’s infrastructure is designed to allow users to earn passive interest or yield on the tokens.

“Cap employs a network of operators specializing in yield generation, democratizing yield previously inaccessible to most,” shared Cap Labs within a press release.

This yield generation does not solely depend on crypto-native activities like funding rate arbitrage and token farming but also incorporates the expertise of conventional financial entities such as HFT firms, private credit funds, and other organizations adept in maximizing yield on a large scale.

The announcement of Cap’s funding comes at a time of increasing popularity for stablecoins, with major players such as banking giant Fidelity and World-Liberty Financial expressing intentions to develop their own stablecoins, alongside significant legislative efforts by the U.S. Congress focusing on stablecoin regulations.

Read more: Stablecoin Market Cap Tops $200B as U.S. Sees Industry Helping Maintain Dollar Dominance