Layer 1 stablecoin payments network 1Money has raised over $20 million in seed funding to further develop its digital payments infrastructure.
According to a report on January 16th announcementMore than 20 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 says its protocol was developed specifically for stablecoin payments using a patent-pending Byzantine consistent broadcast design.
The company's CEO Brian Schroeder called stablecoins “the foundation of a new, modernized global financial system that bridges the gap between Web3 technology and mainstream users.”
Prior to founding 1Money, Mr. Schroeder served as President and CEO of Binance.US from August 2021 to September 2023.
Schroeder announced his new role as co-founder and CEO of 1Money on January 16th. source: brian schroeder
Once fully developed, 1Money Network claims to offer instant trading, fixed fees, and support for multiple stablecoins.
Multicurrency support means that users' transaction fees are paid directly in the stablecoin they are using, without having to manage gas tokens.
Related: Stablecoin issuer “Usual” faces crash after redemption update
Growth of the stablecoin market
While Bitcoin (BTC) ushered in a new era of decentralized payments, centralized stablecoins are emerging as one of the blockchain industry's biggest use cases.
According to CoinGecko, the stablecoin market is currently valued at $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. sauce: CoinGecko
As reported by Cointelegraph, these stablecoin incumbents may soon encounter more competition from fintech giants such as PayPal, Revolut, and Robinhood. Everyone wants a piece of the growing stablecoin pie.
As the crypto bull market continues to heat up, the value of that pie could easily exceed $300 billion this year, according to Guy Young, founder of decentralized stablecoin protocol Ethena.
On the payments side, fintech giant Visa expects the introduction of stablecoins to modernize global payment rails.
“If 2024 is the year that stablecoin demand recovers, 2025 will be the next pivotal opportunity: the rise of stablecoin-linked cards.” Visa Cryptocurrency Department Director Qui Sheffield said.
magazine: Bitcoin payments are being undermined by centralized stablecoins
