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Switzerland-based stablecoin platform M0 raised $40 million in Series B funding, seeking to transform the relationship between token issuers and blockchain developers, according to a press release on Thursday.
The funding round included participation from Polychain Capital, Ribbit Capital, and the Endeavor Catalyst fund, as well as existing investors like Pantera and Bain Capital Crypto. M0 has now raised $100 million since its establishment in 2023.
The development comes as several firms aim to capitalize on a stablecoin boom by positioning themselves as a conduit to the crypto space for companies in the traditional business world, following the recent passage of stablecoin regulation in the U.S.
“Centralized issuance and simple white-labeling models are far from enough,” M0 co-founder and CEO Luca Prosperi said in a statement. “We want to empower the builders of great fintech products to actually control the digital dollar stack they utilize.”
The company takes a “first-principles” approach to stablecoins by separating stablecoin reserve management from programmability. Regulated entities manage the assets backing stablecoins on M0’s platform—like cash and U.S. Treasuries—while developers can use M0 to define who can create, hold, and move the assets.
Stablecoins that debut through M0’s platform are application-specific. M0 stated that its platform surpassed $300 million in aggregate supply in July, more than doubling from January.
M0’s platform will support the debut of MetaMask’s mUSD stablecoin. The team behind the self-custodial wallet indicated that its dollar-pegged token would be debuting on Ethereum and the layer-2 scaling network Linea later this year.
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M0 highlighted other builders on its platform, including the token protocol Noble, stablecoin protocol Usual, gaming operating system Playtron, and payments firm KAST.
Stablecoin platform Bridge, acquired by payments giant Stripe for $1.1 billion last year, was integrated into M0’s platform as its first U.S.-regulated issuer.
Bridge is set to provide licensing and monitoring for mUSD, in addition to reserve management. However, M0 noted that other firms can engage Bridge by issuing stablecoins through its platform.
Governor Waller mentioned that this class of asset has the potential to positively impact retail and cross-border payments.
Meanwhile, Wyoming has become the first US state to deploy a government-backed stablecoin called the Frontier Stable Token (FRNT). It rolled out the digital currency across seven major blockchains, including Ethereum and Solana, among others.
This article has been published in decrypt.co via Yahoo News.
Stablecoin Platform M0 Raises $40 Million in Series B Round
The firm focuses on application-specific stablecoins.
finance.yahoo.com
