M0, a crypto firm focused on stablecoin infrastructure, announced it has raised $40 million in a Series B funding round. The round was led by Polychain Capital and Ribbit Capital, with participation from Endeavor Catalyst, Pantera, and Bain Capital Crypto. This new investment brings the company’s total funding to nearly $100 million.
The funding will be used to continue building M0’s platform, which is designed to let other companies create their own stablecoins. The team believes this approach could reshape the way digital money is issued and used in financial systems.
Key Takeaways
• M0 raised $40 million in Series B funding, bringing its total capital to about $100 million.
• The funding round was led by Polychain Capital and Ribbit Capital.
• M0’s platform allows developers and businesses to build custom stablecoins.
• The company’s model separates reserve management from stablecoin issuance.
• This method challenges the traditional single-issuer approach used by most stablecoin providers.
M0 was co-founded in 2023 by Luca Prosperi and Gregory Di Prisco. Prosperi, who serves as CEO, has a background in finance and previously advised MakerDAO, the decentralized organization that created the Dai stablecoin. The company’s central idea is to rethink how stablecoins are structured and deployed.
Traditionally, stablecoins such as USDT or USDC are issued by a single company like Tether or Circle, which also manage the reserves backing those coins. M0 is offering an alternative model. On its platform, regulated entities act as issuers by holding reserves, while developers can use the M0 protocol to launch their own stablecoins on top of this shared infrastructure.
This approach provides developers with more freedom. They can determine how their stablecoin works, how yield is distributed, and what specific rules it follows. For example, a gaming company might design a stablecoin that includes unique features for in-game payments or loyalty rewards. Because all stablecoins on the M0 network share the same protocol, liquidity remains unified, making it simple for users to exchange one M0-based stablecoin for another.
Prosperi has argued that existing stablecoin technology is not well suited for businesses looking to innovate in digital finance. With M0, companies gain the tools to create money that is tailored to their specific needs.
The company has already lined up partnerships to showcase its technology. ConsenSys, the firm behind the MetaMask crypto wallet, has launched MetaMask USD ($MUSD) using M0’s platform. Other partners include Noble, a blockchain focused on app-specific tokens, and Playtron, a gaming platform. The goal is to make it quicker and easier for businesses to launch stablecoins without starting from scratch.
The timing of this raise also reflects the growing interest in stablecoins. They are now essential within the crypto economy, widely used for trading, lending, and payments across borders. Their value stability, tied to fiat currencies like the US dollar, makes them more practical for everyday use than volatile assets such as Bitcoin. By focusing on the infrastructure that enables stablecoin creation, M0 is positioning itself at the core of this rapidly expanding market.
Frequently Asked Questions
Q. What is a stablecoin?
A. A stablecoin is a type of cryptocurrency whose value is tied to a more stable asset, such as the US dollar, to reduce price volatility. This makes it suitable for everyday payments and financial transactions.
Q. How is M0’s stablecoin network different from others?
A. Most stablecoins are issued by a single centralized company. M0’s platform uses a different model, allowing various regulated entities to act as issuers and manage reserves, while developers can build their own custom stablecoins on the network. This provides more flexibility and control.
Q. Who are the founders of M0?
A. M0 was co-founded by Luca Prosperi, who serves as the CEO, and Gregory Di Prisco.
Q. What companies are using M0’s technology?
A. Companies like MetaMask, Noble, and Playtron are using the M0 platform to build or launch their own custom digital currencies.
