Quick take:
- The fund will be used for the development of Cap’s stablecoin engine, slated for launch later this year.
- Cap’s platform allows users to generate passive interest (yield) from other tokens.
- Users will be able to earn extra yield through restaking protocols like EigenLayer.
Stablecoin engine developer Cap has raised $8 million in a funding round backed by Franklin Templeton, Triton Capital and others. The fundraising brings the total raised to $11 million, following a previous funding round of $3 million.
The company plans to use the fresh capital to accelerate the development of its platform, allowing users to generate passive interest from other tokens. Users will be able to earn extra yield through crypto restaking protocols like EigenLayer.
Explaining how the platform works in an announcement on Monday, Cap Labs said its stablecoin engine “leverages a collective of operators with specialized skills in yield generation to democratize yield previously untapped by the masses.”
“This yield does not solely rely on crypto-native sources like funding rate arbitrage and token farming, but also on the expertise of traditional institutions like HFT firms, private credit funds, and other companies able to capture large-scale yield.”
Cap is not the only Web3 startup looking to leverage the rapid adoption of stablecoins by building a sector-specific product.
Last week, Codex raised $15.8 million in a seed round led by Dragonfy Capital to build a layer-2 blockchain on Optimism focused on stablecoins. In February. Plasma secured a $24 million funding round led by Framework Ventures for a Bitcoin-based blockchain centred on stablecoins.
In March, crypto payments platform MoonPay acquired stablecoin infrastructure startup Iron in a deal reportedly worth at least $100 million as part of its strategy to expand enterprise payments solutions.
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