M0, a Stablecoin Platform, Secures $40 Million in Series B Funding Round

Based in Switzerland, the stablecoin platform M0 has raised $40 million in Series B funding to redefine the dynamics between token issuers and blockchain developers, as outlined in a Thursday press release.

This funding round attracted investors like Polychain Capital, Ribbit Capital, and the Endeavor Catalyst fund, along with current backers such as Pantera and Bain Capital Crypto. Since its founding in 2023, M0 has raised a total of $100 million.

This development aligns with the surge of interest in stablecoins, as numerous companies aspire to act as a bridge to the crypto realm for traditional businesses, especially following recent stablecoin regulations in the U.S.

“Centralized issuance and basic white-label solutions are insufficient,” commented M0 co-founder and CEO Luca Prosperi. “Our goal is to enable innovators in fintech to truly take control of the digital dollar infrastructure they engage with.”

The company takes a “first-principles” approach to stablecoins, distinguishing between the management of reserve assets and their programmability. Regulated entities will handle the assets backing stablecoins on M0’s platform—such as cash and U.S. Treasuries—while developers define the parameters for creating, holding, and transferring these assets.

Stablecoins launched via M0’s platform are designed for specific applications, and M0 reported that its platform’s total supply exceeded $300 million in July, more than double the amount from January.

M0’s platform will facilitate the launch of MetaMask’s mUSD stablecoin; the team behind the self-custodial wallet recently announced that its dollar-pegged token will be launched on Ethereum and the layer-2 scaling network Linea later this year. (Note: MetaMask’s parent company Consensys is among the 22 investors in Decrypt, which maintains editorial autonomy.)

M0 also mentioned various builders on its platform, including the token protocol Noble, stablecoin protocol Usual, gaming system Playtron, and payments company KAST.

The stablecoin platform Bridge, acquired by payments giant Stripe for $1.1 billion last year, has been integrated into M0’s platform as its inaugural U.S.-regulated issuer, according to M0’s statement on X earlier this month.

Bridge will offer licensing and oversight for mUSD, alongside reserve management. M0 noted that other firms can also collaborate with Bridge to issue stablecoins via its platform.