Plasma Mainnet Beta Set to Shake Up Stablecoin Market
The much-anticipated mainnet beta of Bitfinex-backed Layer 1 stablecoin payments platform Plasma is scheduled to launch on September 25. The launch will include over 100 DeFi integrations, including Aave, Ethena, Fluid, and Euler, and over $2 billion in total value locked. Alongside the L1 blockchain, the network’s native cryptocurrency, XPL, will also launch. According to the company, Plasma will rank seventh in terms of stablecoin liquidity on the first day of introduction. A $50 million IPO, a $1 billion deposit campaign earlier this summer, and the $1 billion subscription milestone for Binance Earn’s on-chain product all lend credence to this assertion.
Plasma Introduces Lowest Borrow Rates and Free Transfers
The main goal of Plasma‘s pitch is to establish itself as the preferred stablecoin rail for daily financial operations, enabling card networks, FX, payments, and on-/off-ramps. According to the project, launch-day utilities strive for significant USDT liquidity and the lowest USDT borrow rates in the market. Users will be able to transfer USDT via authorization-based transfers on top of the network’s PlasmaBFT consensus for free from launch.
This is Money 2.0. Our vision with Plasma is to create a world where everyone gains equal and permissionless access to financial services through the power of stablecoins.
Plasma CEO Paul Faecks
Plasma Raises $373M to Disrupt Stablecoin Market
Months of preparation culminate in the impending debut. Demand for the project, which aims to support zero-fee USDT transfers and grow stablecoin markets at the protocol level, drove $373 million in commitments during a 10-day oversubscribed token sale in July, according to Plasma.
With Ethereum and Tron vying for market share, Plasma is joining a crowded stablecoin sector. The governance community of Tron has reduced transaction fees by 60% in an effort to protect its stablecoin stronghold. According to Faecks, who spoke on the expanding stablechain story, Tron’s choice makes sense because it is the second-largest network for stablecoin liquidity. However, in his view, costs by themselves won’t eventually spur adoption.
Tron already carries a large share of stablecoin transfers, so lowering fees is consistent with defending and growing that position. However, Plasma plans to compete with more features than just gasless USD₮ transfers, including local market penetration, institutional distribution, and integration with critical payment partners and fintechs. Momentum will be driven by partner integrations and regional market integration, not by fees alone.
Faecks
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