Plasma, a startup focused on creating a Bitcoin-based blockchain specifically for stablecoins, has successfully raised $20 million in a Series A funding round led by Framework Ventures. This investment follows an earlier $4 million seed round that included notable early backers such as Peter Thiel and Paolo Ardoino of Tether. The funding will facilitate the development of Plasma's testnet and mainnet, along with supporting its expansion into remittances, payments, and decentralized finance (DeFi) applications. Plasma's innovative approach aims to enhance stablecoin adoption by utilizing a Bitcoin sidechain that enables zero-fee USDT transactions, thus addressing scalability issues and high fees faced by stablecoins on other blockchains like Ethereum. The founder of Plasma, Paul Faecks, believes that leveraging Bitcoin's security will create a more efficient and secure blockchain platform for stablecoins, which have become crucial in the cryptocurrency ecosystem, now exceeding a total supply of $220 billion.

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