- Stablecoin network Plasma sets launch date.
- The new blockchain will target users exposed to shaky local currencies.
- Plasma CEO Paul Faecks said he expects adoption in developed markets, too.
Plasma will draw in users left to the mercy of unstable local currencies in a bid to compete in the burgeoning stablecoin payments sector.
That’s according to Paul Faecks, founder and CEO of the new dollar stablecoin-focused blockchain. He spoke to DL News as he prepares to launch Plasma’s mainnet beta on September 25.
“Our initial emphasis is on markets where access to dollars is limited and demand for price-stable value is high, since the utility is most immediate there,” Faecks said. “Our priority is to make digital dollars simple to hold, move and spend.”
Users have already committed $2 billion worth of stablecoins to Plasma, meaning that it will immediately become the tenth-biggest blockchain by stablecoin deposits when it goes live next week.
A key draw is that Plasma will offer zero-fee transactions on transfers of USDT, the dominant crypto stablecoin issued by Tether, a sister company of Plasma creator Bitfinex.
Getting crowded
Plasma’s launch comes as multiple firms compete to create stablecoin payments networks.
Payments giant Stripe and crypto venture firm Paradigm are building their own stablecoin-focused blockchain called Tempo.
Circle, the firm behind USDC, the world’s second-biggest stablecoin, also plans to launch a new blockchain to process stablecoin payments called Arc.
They will compete with incumbents like Tron, currently the biggest blockchain for stablecoin payments, and Polygon, a rival blockchain which recently pivoted to facilitating stablecoin payments.
The wave of enthusiasm comes after Treasury Secretary Scott Bessent predicted in June that US dollar stablecoins could grow to a $2 trillion market in the coming years.
Bessent’s comments, coupled with similarly bullish forecasts from analysts, the passage of landmark stablecoin legislation in the US, and Circle’s blockbuster $1 billion initial public offering, sparked a stablecoin rush as investors and businesses seek to capitalise on the trend.
New markets
Plasma plans to compete by tapping into new markets.
“The aim is to grow the overall stablecoin pie rather than compete only for existing activity,” Faecks said. “The largest opportunity is bringing new users onchain.”
Tether’s USDT stablecoin has always been popular with users in developing countries, or those where local currencies are unstable. This demographic uses stablecoins primarily as a way to prevent the erosion of their savings and for everyday payments.
To expand this market, Plasma has partnered with Yellow Card, an payments infrastructure provider in Africa, and BiLira, a Turkish Lira-pegged stablecoin, among others.
Plasma isn’t just betting on emerging markets.
The network is designed for broad use, and Faecks said he expects adoption in developed markets, too.
To that end, Plasma has already signed on several decentralised finance partners, including EtherFi and Maple Finance. It will serve existing crypto users by giving them access to USDT borrowing with deep liquidity, Faecks said.
Beta launch
Plasma’s mainnet beta version will go live on September 25, almost eight months after the project was first announced.
Launching Plasma in beta will let the team validate security, performance and integrations under real usage with clear upgrade paths, according to Faecks.
Users will be able to use the network for transfers and DeFi during the beta period.
“We will exit beta once predefined benchmarks for security, reliability and decentralisation are met,” Faecks said.
Tim Craig is DL News’ Edinburgh-based DeFi Correspondent. Reach out with tips at tim@dlnews.com.
