Peter Thiel-Backed Crypto Startup’s Quiet Power Move

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Peter Thiel-Backed Crypto Startup’s Quiet Power Move




Peter Thiel-Backed Crypto Startup’s Quiet Power Move

Key Takeaways

  • Plasma launched Plasma One, which is a groundbreaking neobank that’s fully centered on stablecoins. This innovative platform is all about making it easy to save, spend, and earn with digital dollars.
  • With an ICO of $373 million in investment commitments, billionaire investor Peter Thiel is among its early backers. 
  • The company claimed more than $2.5 billion in stablecoin TVL at launch and plans to roll out access in stages. 

Known for his unconventional investments in politics and technology, billionaire investor Peter Thiel has made what industry insiders refer to as a “quiet power move” in the cryptocurrency space. In a statement by Paul Faecks, CEO of Plasma he said that “Plasma One is the answer to the dollar distribution problem, as it puts them directly in the hands of people who face financial exclusion.”

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What is Plasma One?

Plasma One is a neobank (combining digital banking, payment, savings, and transfers) built around stablecoins starting with USDT (Tether) with plans to expand. The product includes a virtual/physical card, enabling users to spend stablecoins, earn yield, get cash back, and move money globally. Key features include:

  • 4% cash back on spending via the card. 
  • Stablecoin balances with no lock-up period yield more than 10%.
  • Zero fees on USDT transfers (eventually more broadly, initially within the Plasma dashboard). 
  • International coverage: The plan is for Plasma One to serve users in over 150 countries. 
  • Instead of first converting to fiat currency, users will be able to load stablecoins onto their cards and make payments straight from those balances. Physical and virtual cards will be issued via Rain (which is known for cards such as the Avalanche Card).

What This Means for Investors

At the moment, Plasma is giving USDT holdings on Binance a 2% yield. When it first launched in August, it was in great demand and soon attracted lock-ups valued at $1 billion. Naturally, a 10% yield is a big improvement over this offering.

The business uses local teams and peer-to-peer cash networks to promote adoption in emerging markets where dollar access is most important. The rollout takes place before Plasma’s mainnet beta launch on September 25. The omnichain version of USDT0, the $XPL token, and $2.0B in liquidity are spread across more than 100 DeFi protocols.

The Big Picture

Anyone should be able to send money from a mobile phone, earn interest, pay in stores, and access dollars without any restrictions. With a product for millions of users who require a reliable and secure substitute, the company, which is supported by Bitfinex and Peter Thiel, claims that its model will allow the development of the most effective rails for global finance.

 

 

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