Tech, Stablecoin, Funding Rounds A latest $8 million funding spherical will likely be used to develop Cap’s stablecoin engine, which is slated to launch later this 12 months.
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 complete funding — introduced on the shut of a latest $8 million seed spherical — will likely 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 immediately tied to a different asset, just like the U.S. greenback. Cap’s system is constructed so customers could generate passive curiosity — or yield — on the tokens.
Cap “leverages a collective of operators with specialized skills in yield generation to democratize yield previously untapped by the masses,” Cap Labs defined in a press launch.
“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.”
According to the assertion, Cap will give customers the chance to earn additional yield by means of restaking protocols like EigenLayer. Restaking protocols enable individuals to stake — or lock up — collateral to safe blockchain protocols in change for rewards.
Cap’s funding information comes at a time when stablecoins have gotten extraordinarily common, with banking giant Fidelity, 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.
Read extra: Stablecoin Market Cap Tops $200B as U.S. Sees Industry Helping Maintain Dollar Dominance
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