For the fundraising effort, M^0 has launched its core protocol and on-chain governance mechanism on the Ethereum mainnet.
Decentralized infrastructure provider M^0 has successfully secured $35 million in a Series A round for its cutting-edge stablecoin issuance platform.
The funding round was led by Bain Capital Crypto, with strong support from existing investors and partners including Galaxy Ventures, Wintermute Ventures, GSR, Caladan, and SCB 10X. The company announced the deployment of its core protocol and on-chain governance mechanism on the Ethereum mainnet on June 4.
M^0 enables institutional clients to mint stablecoins backed by high-quality collateral, such as United States Treasurys. This process, similar to asset tokenization, allows institutional investors to convert assets into digital tokens, specifically stablecoins.
Unlike MakerDAO’s stablecoin, Dai, which uses crypto assets as collateral, M^0 relies on traditional assets. The team behind M^0 includes former members of MakerDAO and Circle, bringing extensive expertise to the platform.
“Stablecoins are the largest and fastest-growing asset for settlement on public blockchains today. We anticipate this market to rapidly expand to trillions of dollars over the next decade,” stated Stefan Cohen, partner at Bain Capital Crypto.
The adoption of stablecoins is expected to soar, particularly in decentralized finance (DeFi) applications such as asset tokenization and remittances. According to DefiLlama, the market cap of all stablecoins stands at $160 billion.
“While the stablecoin sector has grown significantly, it still largely consists of what we consider to be first-generation solutions, often layered on outdated financial infrastructure,” said Luca Prosperi, president of the M^0 Foundation. “Our vision is to advance this technology as the next-generation backend for fintech frontends.”
M^0 had previously raised $22.5 million in seed funding led by Pantera Capital in early 2023, which was used to bootstrap the platform.
“We are moving from an outdated monetary infrastructure dominated by centralized entities to a modern, federated framework for cryptodollar issuance,” added Prosperi.