Plasma has raised $500 million and partnered with Aave to reshape the stablecoin market, aiming to boost liquidity, utility, and adoption across DeFi.
Plasma’s strategic partnership with Aave aims to transform fee-free international payments.
Stablecoin infrastructure-focused blockchain platform Plasma is causing a stir in the cryptocurrency world after raising $500 million with its XPL token offering and forming a strategic alliance with DeFi behemoth Aave on the last day.
Through the Aave partnership, Plasma will distribute USDT to institutional clients and underserved markets globally by integrating the lending and liquidity infrastructure of the DeFi protocol. Additionally, the platform will support Aave’s native stablecoin, GHO, upon launch.
According to Plasma, its network is already up and running with Aave, enabling users of its deposit program to start receiving real yield straight from the protocol.
With complete Ethereum Virtual Machine (EVM) compatibility, the blockchain platform functions as a Bitcoin sidechain and is designed to be quick and effective.
Per its official literature, the platform is promoting itself as a high-performance settlement layer tailored for fee-free USDT transfers and international payments. Additionally, it seeks to simplify DeFi services and remittances worldwide.
The native currency of the network, which will drive governance and transactions, will be Plasma’s XPL token.
$500 million is invested in Plasma’s XPL.
The explosive growth of Plasma comes after a record-breaking initial coin offering (ICO) that ended on June 9.
Within minutes of the sale on Sonar, a platform for public token sales developed by cryptocurrency firm Echo, $500 million in stablecoin deposits were made.
The charity event was “ten times oversubscribed, and one guy spent $100K on gas just to get in,” according to blockchain analytics company Arkham Intelligence.
Data from Arkham Intelligence indicates that $500 million worth of stablecoins are presently stored in a wallet connected to Plasma. These consist of $1.21 million in DAI, $7.5 million in USDS, $146.09 million in USDT, and $345.2 million in USDC.
According to the Plasma Foundation, over 1,100 wallets participated in the fundraising, with each wallet contributing an average of about $35,000.
A team member stated that although Plasma received $500 million in deposits, the project will only issue $50 million worth of XPL tokens in this first round. Meanwhile, depositors can receive yield by withdrawing money or buying tokens in subsequent transactions.
According to market watchers, the robust demand demonstrates growing interest in stablecoins and the infrastructure that underpins them.
The ICO hasn’t been without controversy, either. Shortly before the offering, cryptocurrency dealer Hanzo said that over 100 wallets engaged in the transaction had received 48 million USDC through Coinbase Premium.
Additionally, he asserted that specific wallets engaged with the token contract before its release, indicating potential insider involvement.
