Midas Protocol Raises $8.75M to Revolutionize Stablecoin

Midas Protocol Raises $8.75M to Revolutionize Stablecoin

Midas Protocol Raises $8.75M to Revolutionize Stablecoin

Midas Protocol, a protocol enabling users to earn interest from US Treasury notes, received an $8.75 million fundraising led by BlockTower Capital.

BlockTower Capital, Framework Ventures, and HV Capital led the $8.75 million fundraising round for Midas Protocol, a real-world asset tokenization protocol that enables users to earn native interest from US Treasury notes.

Among others, Coinbase Ventures, GSR, Hack VC, Ledger, FJ Labs, Lattice Capital, and Theia Ventures participated in the fundraising.

A stablecoin called $mTBILL, which they are launching, will allow users to earn US T-Bills on-chain. The company claims that since the two largest stablecoin providers, Tether (USDT) and Circle (USDC), launched during periods of zero interest rates, it could be disruptive to the stablecoin market to introduce a stablecoin during a non-zero interest rate period.

“The stablecoin supply rapidly shrank to under $120b in a year, coinciding with the rise in the risk-free rate from 0% to 5% after reaching peaks of over $187b,” Midas wrote on X. The business added, with a graphic depiction, “On-chain returns shrank, and investors withdrew capital to reallocate to safer assets like US T-Bills.”

Midas Protocol Raises $8.75M to Revolutionize Stablecoin
Source: Midas on X

According to Midas, stablecoins need to at least equal US T-Bills’ risk-free rate of return in order to remain a competitive investment alternative. It is launching $mTBILL, a yield-focused stablecoin, for this reason.

Midas says that its offering, which includes institutional-grade security, regulatory-compliant yield distribution, compatibility with DeFi protocols, and yield exposure, fills the gap left by existing suppliers who can’t legally distribute yield.

With its ability to fix inefficiencies and usher in a new era of possible income, $mTBILL is a representation of the future of stablecoins. By combining traditional and decentralized income, it creates a benchmark for on-chain capital and opens the door for the revitalized expansion of stable funds. Midas written.

Read Previous

FTX Bankruptcy Estate To Sell $7.5B Solana

Read Next

Grok-1.5: X.AI’s Latest Leap in AI Technology