Cap, a yield-bearing stablecoin protocol, shared Monday that it has raised $11 million in funding from big-name monetary establishments together with Franklin Templeton and Triton Capital.
The overall funding — introduced on the shut of a current $8 million seed spherical — can be used to develop Cap’s stablecoin engine, which is slated to launch later this 12 months. Cap raised $3 million in a earlier funding spherical.
Stablecoins are a type of cryptocurrency whose worth is straight tied to a different asset, just like the U.S. greenback. Cap’s system is constructed so customers might generate passive curiosity — or yield — on the tokens.
Cap “leverages a collective of operators with specialised abilities in yield technology to democratize yield beforehand untapped by the plenty,” Cap Labs defined in a press launch.
“This yield doesn’t solely depend on crypto-native sources like funding price arbitrage and token farming, but additionally on the experience of conventional establishments like HFT companies, non-public credit score funds, and different firms capable of seize large-scale yield.”
In accordance with the assertion, Cap will give customers the chance to earn further yield via restaking protocols like EigenLayer. Restaking protocols permit folks to stake — or lock up — collateral to safe blockchain protocols in trade for rewards.
Cap’s funding information comes at a time when stablecoins have gotten extraordinarily fashionable, with banking giant Constancy, President Trump’s World-Liberty Financial, and the state of Wyoming sharing their intentions to create their very own stablecoins, and the U.S. Congress focusing its efforts on passing stablecoin laws.
Learn extra: Stablecoin Market Cap Tops $200B as U.S. Sees Industry Helping Maintain Dollar Dominance
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