Layer-1 stablecoin payments network 1Money has raised more than $20 million in seed funding to further develop its digital payments infrastructure.
According to a Jan. 16 announcement, more than two dozen venture capital firms participated in the seed round, including F-Prime Capital, Galaxy Ventures, Hack VC, Tribe Capital, Kraken Ventures, KuCoin Ventures, BitGo Ventures, Bankless Ventures, MoonPay Ventures, Portage and Ethereal Ventures.
1Money said its protocol is developed solely for stablecoin payments using a patent-pending Byzantine consistent broadcast design.
The company’s CEO, Brian Shroder, called stablecoins the “foundation for a new, modernized global financial system” that will bridge the gap between Web3 technology and mainstream users.
Before founding 1Money, Shroder served as president and chief executive of Binance.US between August 2021 and September 2023.
Shroder announced his new role as co-founder and CEO of 1Money on Jan. 16. Source: BrianShroder
Once fully developed, the 1Money Network claims it will offer instant transactions, fixed costs and support for multiple stablecoins.
Multicurrency support means users’ transaction fees will be paid directly in the stablecoin they are using without having to manage gas tokens.
Related: Stablecoin issuer ‘Usual’ faces sell-off after redemption update
Stablecoin market growth
Although Bitcoin (BTC) ushered in a new era of decentralized payments, centralized stablecoins have emerged as one of the blockchain industry’s biggest use cases.
According to CoinGecko, the stablecoin market is currently worth $214 billion, with Tether’s USDt (USDT) and USD Coin (USDC) accounting for over 85% of the total value.
Fiat-backed tokens like USDT and USDC dominate the stablecoin market. Source: CoinGecko
As Cointelegraph reported, these stablecoin incumbents may soon see more intense competition from fintech giants such as PayPal, Revolut and Robinhood. All want a piece of the growing stablecoin pie.
The value of that pie could easily exceed $300 billion this year as the crypto bull market continues to heat up, according to Guy Young, founder of the decentralized stablecoin protocol Ethena.
On the payments side, fintech giant Visa expects stablecoin adoption to modernize global payment rails.
“If 2024 was the year stablecoin demand picked back up, 2025 will introduce the next pivotal opportunity: the rise of stablecoin-linked cards,” said Visa’s head of crypto, Cuy Sheffield.
Magazine: Bitcoin payments are being undermined by centralized stablecoins