M0 Secures $40 Million in Funding for Stablecoin Infrastructure
M0, a startup specializing in stablecoin infrastructure development, announced on Thursday that it has successfully raised $40 million in a funding round led by Polychain, a notable venture capital firm in the crypto space, alongside fintech investor Ribbit Capital. Additional contributions came from the Endeavor Catalyst fund and existing backers like Pantera and Bain Capital Crypto. Luca Prosperi, M0’s cofounder and CEO, chose not to disclose the company’s valuation. This Series B round involved both equity and locked tokens, which can only be liquidated after a predetermined period. To date, M0 has accumulated nearly $100 million in total capital. Prosperi emphasized the need for a unified approach, stating, “We cannot have 1,000 different Tethers and Circles,” referring to the two dominant stablecoin issuers. He highlighted M0’s goal to establish a framework for different issuers to ensure interoperability and liquidity among themselves.
Venture Capital Interest in Stablecoin Sector Grows
M0’s funding marks a significant trend among startups attracting capital from investors eager to tap into the rapidly expanding stablecoin sector. Over the past year, stablecoins—cryptocurrencies linked to tangible assets like the U.S. dollar—have gained remarkable traction in Silicon Valley. Notably, Circle, the second-largest stablecoin issuer after Tether, went public in June, achieving a market valuation exceeding $30 billion. Additionally, in July, the Genius Act, designed to regulate and establish guidelines for the growing stablecoin market, was signed into law by former President Donald Trump. The increasing interest has prompted major technology firms such as Meta and Airbnb, as well as financial institutions like JPMorgan Chase and Bank of America, to investigate potential integrations of stablecoins into their operations. “Stablecoins are proliferating,” remarked Josh Rosenthal, a general partner at Polychain, indicating the sector’s significant momentum within the broader fintech landscape.
Stablecoins as the Future of Financial Infrastructure
Supporters of stablecoins envision these digital tokens as foundational elements of future financial systems, capable of providing cheaper and faster payment methods compared to traditional banking wire transfers or the international SWIFT system. Prosperi’s vision for M0 reflects this ambition, as he refers to his startup as the “layer zero of money.” This name draws attention to the concept that any number raised to the power of zero equals one, paralleling the stable value of a single stablecoin. Prosperi, who has extensive experience in the finance sector—including a tenure at Morgan Stanley—became deeply involved in the stablecoin conversation while advising MakerDAO, a project known for issuing a stablecoin governed by a decentralized group of crypto investors. He later collaborated with cofounder Gregory Di Prisco, also a former MakerDAO team member, to establish M0. Their venture aims to create a platform that allows stablecoin issuers to deploy their tokens without needing to navigate the complex software considerations related to asset transfers across various blockchains like Ethereum or Solana.
Focus on Expansion Over Immediate Profitability
Currently, Prosperi is prioritizing the growth of M0 rather than immediate profitability. Similar to Uber’s early strategy of expanding its presence across the U.S. before focusing on revenue generation, M0 intends to onboard a significant number of stablecoin issuers to its network. This approach includes partnerships like the one recently formed with MetaMask, which announced its own stablecoin in collaboration with M0. Prosperi stated, “My mandate as a CEO in the next two to five years is to scale this network as much as possible,” underscoring his commitment to the company’s growth objectives.
