Plasma Looks to Raise $50M From Token Sale, With Valuation of $500M, for EVM-Compatible Sidechain

Plasma, a stablecoin-focused blockchain linking Bitcoin’s security with Ethereum Virtual Machine (EVM) smart contracts, is raising $50 million from a token sale, valuing it at $500 million.

The chain is backed by investors including Peter Thiel's Founders Fund, Framework Ventures, and Bitfinex. The firm has announced the launch of a public token sale as well.

A public sale of Plasma’s XPL token opens on Thursday on its website leveraging Echo’s Sonar technology, offering 10% of the fully diluted supply. The sale follows a deposit round that hit its $1 billion cap in 35 minutes, according to the firm.

The network, whose testnet launched on July 15, is positioned as an alternative rail for stablecoin transfers, starting with Tether’s USDT. By operating as an EVM-compatible Bitcoin sidechain, Plasma says it’s possible to move USDT without incurring transaction fees. The network already holds $1 billion in stablecoin liquidity.

Plasma enters a market where stablecoins already settle billions of dollars daily, with most volume seen on Tron and Ethereum, at a time in which Tether is dropping support for five blockchain as it shifts its focus to Layer 2s..

The launch lands as policymakers focus on stablecoins. In Washington, the Senate’s GENIUS Act and the House’s STABLE Act would require stablecoin issuers to hold dollar cash or Treasuries on a one-to-one basis, submit to independent audits once liabilities top $50 billion and comply with strict anti-money-laundering rules.

Regulation is also accelerating abroad, with the European Union’s Markets in Crypto Assets going into full effect this year.

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