Bitfinex has made an investment in Plasma, a platform designed for payments, real-world assets, and decentralized finance infrastructure that focuses on Bitcoin.
The Bitfinex team announced via X on October 18 that it had invested in Plasma to enhance the use of Tether (USDT) on the Bitcoin (BTC) network.
As detailed in a blog post about Plasma, the platform aims to create a zero-fee payment system for USDT transactions.
This network enables users to transfer U.S. dollar-backed assets globally without incurring any fees, utilizing Bitcoin. Plasma intends to leverage the advantages of USDT and similar stablecoins, with its own network serving as the execution layer instead of relying on BTC as the primary payment asset.
Plasma supports gas fee payments in BTC due to its native UTXO functionality. Its account architecture also facilitates a hybrid environment where users can access staking and other benefits on Bitcoin. Furthermore, it provides compatibility with the Ethereum Virtual Machine.
In addition to addressing challenges in global payments, Plasma aims to foster greater adoption of the Bitcoin network in relation to RWAs and DeFi, as highlighted in the blog post.
Regarding the investment, Bitfinex’s chief technical officer (who is also Tether’s CEO) Paolo Ardoino stated:
“Bitfinex is thrilled to back the expanding Bitcoin ecosystem through our investment in Plasma. Given the uncertainties surrounding future developments, it’s crucial to explore various ways to build on the most secure, decentralized, and resilient financial and communication network ever created by humanity: Bitcoin”
Plasma has also garnered financial support from Christian Angermayer, the founder of Apeiron Investment Group. Other investors include the venture capital firms Split Capital, Manifold, and Anthos Capital.
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