M^0 has launched its governance mechanism and core protocol on the Ethereum mainnet as a component of its fundraising efforts.
M^0 has raised $35 million in a Series A funding round to support its stablecoin issuance platform, which is a decentralized infrastructure provider.
Along with other investors and partners SCB 10X, Caladan, Galaxy Ventures, Wintermute Ventures, and GSR, Bain Capital Crypto spearheaded the investment round. On June 4, the company’s release states that they launched its core protocol and on-chain governance mechanism on the Ethereum mainnet.
Using high-quality collateral like United States Treasurys, institutional customers may issue stablecoins using M^0. Institutional investors may turn their assets into digital tokens, namely a stablecoin, via a process similar to asset tokenization.
In a similar vein, MakerDAO’s stablecoin Dai mints DAI using crypto assets held in smart contracts rather than conventional assets. The team behind the M^0 protocol includes former members of MakerDAO and Circle.
“As of right now, stablecoins are the most valuable and rapidly expanding asset type for settlement on public blockchains. Bain Capital Crypto partner Stefan Cohen predicted that the industry would reach billions of dollars in value over the next decade.”
Stablecoins are anticipated to see increased usage, especially in decentralized finance (DeFi) uses such asset tokenization and remittances. At the time of writing, all stablecoins had a market valuation of $160 billion, according to DefiLlama.
Luca Prosperi, president of the M^0 Foundation, believes that, despite the growth of the stablecoin industry, it mostly consists of what they see as [version 1] solutions, which are frequently just further layers on top of outdated and unnecessary financial infrastructure. “Our goal is to make this technology the backend of choice for financial frontends in the future.”
Pantera Capital led the $22.5 million initial investment round that M^0 completed in early 2023. The platform was “bootstrapped” using these funds.
The shift from a centrally controlled, antiquated monetary system to a decentralized one is underway, according to Prosperi.
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