Framework Ventures has led a US$20 million series A funding round for stablecoin firm Plasma, bringing the company’s total funding to US$24 million.

The financing is aimed at supporting the development of Plasma’s blockchain network.

Plasma is developing a blockchain specifically designed for Tether’s USD-pegged stablecoin, USDT.

This network is an Ethereum Virtual Machine (EVM)-compatible bitcoin sidechain, intended to allow fee-free USDT transfers and enhance transaction efficiency.

In October 2024, the company raised US$3.5 million in a funding round led by cryptocurrency exchange Bitfinex.

Tether’s USDT is the largest USD-pegged stablecoin, with a market capitalization of about US$142.42 billion.

Additionally, it ranks as the third-largest cryptocurrency by market cap, following bitcoin and ethereum.