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

Bitfinex has announced its investment in Plasma, a decentralized infrastructure platform focused on payments, real-world assets (RWAs), and decentralized finance (DeFi) with an emphasis on Bitcoin. The investment, revealed on October 18 via X (formerly Twitter), aims to scale the usage of Tether (USDT) on the Bitcoin network.

Plasma is designed to provide a zero-fee payment rail for USDT, allowing users to send U.S. dollar-denominated assets to anyone across the globe without transaction fees. Unlike typical payment networks that rely on Bitcoin (BTC) as the native asset, Plasma is looking to leverage stablecoins like USDT, using its network as the execution layer.

The platform also supports gas fee payments in Bitcoin (BTC) thanks to its native UTXO (unspent transaction output) support, enabling a hybrid ecosystem where users can access additional benefits, such as staking. Plasma also offers compatibility with the Ethereum Virtual Machine (EVM), further enhancing its versatility for decentralized applications.

Beyond addressing global payment challenges, Plasma’s goal is to drive greater adoption of the Bitcoin network, particularly for real-world assets (RWAs) and DeFi applications, according to the project’s blog post.

In essence, this partnership aligns with Bitfinex’s broader strategy to support the growth of stablecoin usage on the Bitcoin network, offering more efficient, cost-effective, and scalable financial solutions.

Commenting on the investment, Bitfinex chief technical officer (also chief executive officer of Tether) Paolo Ardoino, said:

“Bitfinex is excited to support the growing Bitcoin ecosystem with our investment in Plasma. With the uncertainty that covenants will come to fruition, it’s very important to explore different avenues to build on top of the most secure, decentralized, and resilient money and speech network ever built by humanity: Bitcoin”

In addition to Bitfinex’s investment, Plasma has secured financial backing from prominent investors, including Christian Angermayer, the founder of Apeiron Investment Group. Angermayer, known for his involvement in various innovative tech and blockchain projects, adds significant credibility to Plasma’s mission.

Other investors backing the platform include well-known venture capital firms such as Split Capital, Manifold, and Anthos Capital. These strategic partnerships bring both financial support and industry expertise to Plasma, further solidifying its potential to drive adoption in the realms of decentralized finance (DeFi) and real-world asset (RWA) integration on the Bitcoin network.