Plasma’s New Tether Blockchain Promises Zero-Fee Transactions, Set for 2025 Launch
Nidhi Kolhapur13 Feb 20253 min read
Tether, the world’s largest stablecoin, continues to dominate the market. With a staggering 70% market share and $13.7 billion in profits last year, its influence in the crypto space is undeniable. But what if Tether transactions could be even faster, cheaper, and more efficient?
Paul Faecks, co-founder of Plasma, is building a blockchain designed specifically for Tether. His goal is to enable zero-fee USDT transactions and reshape how stablecoins move across blockchains. If successful, this could be a game-changer.
Here’s how Plasma plans to make it happen.
A Blockchain Just for Tether
Plasma is being developed as a sidechain on the Bitcoin network while remaining fully compatible with the Ethereum Virtual Machine (EVM), which powers much of decentralized finance (DeFi). The project aims to solve key issues stablecoins face on other blockchains, such as high fees and scalability problems.
By using Bitcoin’s security, Plasma will allow seamless, zero-fee USDT transactions.
$24 Million Raised to Launch Tether-Focused Blockchain
Plasma is set to launch its blockchain for Tether in Q2 of this year, backed by major investors. On Thursday, the company announced it had raised $24 million in its initial funding round, led by Framework Ventures. The round also saw support from crypto exchange Bitfinex, venture capitalist Peter Thiel, and Tether CEO Paolo Ardoino Paolo Ardoino at bitfinex Paolo Ardoino holds the position of Chief Executive Officer at Tether and Chief Technology Officer at Bitfinex, a leading crypto exchange firm. His enthusiasm for cryptography was ignited during his military research, which subsequently inspired him to establish Fincluster in London. He progressed from the position of senior developer to that of Chief Technology Officer at BitFinex in the year 2016. Under his guidance, Bitfinex introduced significant features such as staking, custody services, a peer-to-peer streaming protocol, and a market surveillance tool. Quick Facts Full name Paolo Ardoino Birth 1984, Cisano sul Neva, Italy Nationality Italian Education Computer Science Degree from the University of Genoa Wife/Partner Claudia Lagorio Net worth $9.5 B Experience CEO at Tether from Dec 2023 to present. CTO from Dec 2017 to Apr 2024. CTO at Bitfinex from Mar 2015 to Present. Lead software engineer from Oct 2014 to Feb 2015. Chief strategy officer at Holepunnch from January 2020 to present. Partner at Fincluster from 2012 to 2015.Senior full-stack developer at Frame Asset Management from 2010 to 2012. Joint Founder at Involutive snc from jan 2007 to Apr 2009. Web programmer at Freelance Consultant from 2003 to 2008. EntrepreneurDeveloper/ProgrammerFinanceChief Technology Officer .
This investment follows an earlier $4 million funding round backed by Bitfinex, Ardoino, Thiel, and well-known crypto traders Cobie and Zaheer Ebtikar. The new funds will help Plasma launch its testnet and mainnet while also expanding into remittances, payments, and DeFi applications.
Why Plasma is Different
Tether is already available on multiple blockchains, including Solana, Tron, Polkadot, and Bitcoin via the Omni Layer. However, Paul Faecks explained that Plasma is built specifically to make stablecoin transactions faster and more efficient.
Unlike other blockchains, it removes features like NFT trading, memecoins, airdrops, and decentralized voting, focusing entirely on handling high-volume stablecoin transactions.
THIS is the Future of Crypto Transactions
Stablecoins have become a key part of the crypto market, with their total supply now exceeding $220 billion. They are widely used for everyday payments and savings, but most of this activity happens on newer blockchains like Ethereum, Tron, and Solana rather than Bitcoin.
“Stablecoins are the clear winner in blockchain adoption, yet they’re treated as second-class citizens on current blockchains,” Paul Faecks, founder and CEO of Plasma, remarked in a statement. “By leveraging Bitcoin as a foundation, zero-fee USDT transfers, alongside a purpose-built ecosystem and infrastructure for stablecoins with deep liquidity, Plasma creates the most secure, scalable, and efficient blockchain for stablecoins on the market,” he added.
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A blockchain built for Tether? If Plasma delivers on its promise, stablecoin transactions may never be the same again.
