Stablecoin Platform M0 Raises $40 Million in Series B Round

Switzerland-based stablecoin platform M0 raised $40 million in Series B funding, as it seeks to shake up the relationship between token issuers and blockchain developers, according to a press release on Thursday.

The funding round, which included Polychain Capital, Ribbit Capital, and the Endeavor Catalyst fund, also saw participation from existing investors like Pantera and Bain Capital Crypto, M0 said. The firm has now raised $100 million since its establishment in 2023.

The development comes as several firms aim to capitalize on a stablecoin boom by positioning themselves as a conduit to the crypto space for companies in the traditional business world, following this year’s passage of stablecoin regulation in the U.S.

“Centralized issuance and simple white-labeling models are far from enough,” M0 co-founder and CEO Luca Prosperi said in a statement. “We want to empower the builders of great fintech products to actually control the digital dollar stack they utilize.”

The company says it has a “first-principles” approach to stablecoins by separating stablecoin reserve management from programmability. That means regulated entities manage the assets backing stablecoins on M0’s platform—like cash and U.S. Treasuries—while developers can use M0 to define who can create, hold, and move the assets.

Stablecoins that debut through M0’s platform are application-specific, and M0 said that its platform surpassed $300 million in aggregate supply in July, more than doubling from January.

M0’s platform will support the debut of MetaMask’s mUSD stablecoin, M0 said. The team behind the self-custodial wallet signaled a week ago that its dollar-pegged token would be debuting on Ethereum and the layer-2 scaling network Linea later this year. (Disclosure: MetaMask parent company Consensys is one of 22 investors in Decrypt, which retains editorial independence.)

M0 highlighted other builders on its platform, including the token protocol Noble, stablecoin protocol Usual, gaming operating system Playtron, and payments firm KAST.

Stablecoin platform Bridge, which was acquired by payments giant Stripe for $1.1 billion last year, was integrated into M0’s platform as its first U.S.-regulated issuer, M0 said on X earlier this month. 

Bridge is set to provide licensing and monitoring for mUSD, in addition to reserve management, but M0 noted that other firms can tap Bridge by issuing stablecoins through its platform.