Fast take:
The fund will likely be used for the event of Cap’s stablecoin engine, slated for launch later this 12 months.
Cap’s platform permits customers to generate passive curiosity (yield) from different tokens.
Customers will be capable of earn further yield via restaking protocols like EigenLayer.
Stablecoin engine developer Cap has raised $8 million in a funding spherical backed by Franklin Templeton, Triton Capital and others. The fundraising brings the whole raised to $11 million, following a earlier funding spherical of $3 million.
The corporate plans to make use of the recent capital to speed up the event of its platform, permitting customers to generate passive curiosity from different tokens. Customers will be capable of earn further yield via crypto restaking protocols like EigenLayer.
Explaining how the platform works in an announcement on Monday, Cap Labs mentioned its stablecoin engine “leverages a collective of operators with specialised abilities in yield technology to democratize yield beforehand untapped by the plenty.”
“This yield doesn’t solely depend on crypto-native sources like funding price arbitrage and token farming, but in addition on the experience of conventional establishments like HFT corporations, non-public credit score funds, and different corporations in a position to seize large-scale yield.”
Cap will not be the one Web3 startup seeking to leverage the fast adoption of stablecoins by constructing a sector-specific product.
Final week, Codex raised $15.8 million in a seed spherical led by Dragonfy Capital to construct a layer-2 blockchain on Optimism centered on stablecoins. In February. Plasma secured a $24 million funding spherical led by Framework Ventures for a Bitcoin-based blockchain centred on stablecoins.
In March, crypto funds platform MoonPay acquired stablecoin infrastructure startup Iron in a deal reportedly price not less than $100 million as a part of its technique to broaden enterprise funds options.
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