Bitfinex backs payments chain Plasma’s bid to expand USDT on Bitcoin

As a seasoned researcher with a keen interest in blockchain technology and its potential to revolutionize global finance, I find the investment by Bitfinex in Plasma intriguing. With my background in understanding the nuances of cryptocurrencies and their underlying technologies, it’s clear that this move signifies a strategic step towards scaling the usage of stablecoins like Tether (USDT) on Bitcoin (BTC).


Bitfinex has put money into Plasma, a system that focuses on Bitcoin, offering payment solutions, support for real-world assets, and infrastructure for decentralized finance.

On October 18, the Bitfinex group declared through X that they have put funds into Plasma with the aim of enhancing the use of Tether (USDT) on Bitcoin (BTC).

The blog post discussing Plasma proposes that it aims to establish a system for transactions involving USDT without any fees.

This is a system that allows users to transfer U.S. dollar-backed assets to anyone globally without incurring fees, using the underlying technology of Bitcoin as a foundation. Unlike Bitcoin itself, Plasma focuses on utilizing stablecoins like USDT for transactions within its network, acting as the execution layer.

Plasma allows for gas fees payment with BTC as it has native UTXO support. The account architecture also means a hybrid environment on which users can unlock staking and other benefits on Bitcoin. It also offers Ethereum virtual machine compatibility.

Beyond addressing global payment issues, Plasma also intends to boost the use of the Bitcoin network within Regulated Financial Institutions (RFIs) and Decentralized Finance (DeFi), as stated in the blog post.

Regarding the investment, Paolo Ardoino, who serves as both the Chief Technical Officer at Bitfinex and the CEO of Tether, expressed his thoughts.

Bitcoin.

The financing for plasma has additionally received investment from Christian Angermayer, the founder of Apeiron Investment Group, as well as venture capital platforms such as Split Capital, Manifold, and Anthos Capital.

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2024-10-18 19:40