Cap Secures Seed Funding to Revolutionize Stablecoin Yield

Cap, a blockchain company focused on innovative stablecoin solutions, has announced the successful closure of an $8 million seed funding round.

The investment was spearheaded by prominent players in both traditional and digital finance, including Franklin Templeton Digital Assets and Triton Capital XYZ, with significant participation from GSR, Flow Traders, Laser Digital (Nomura's digital asset arm), IMC, RockawayX, and Superscrypt.

This substantial seed round follows a previously successful $1.1 million community round, partially executed on the Echo platform with involvement from various online communities.

According to a statement by Cap, the company aims to tackle the "open question" of safe and sustainable yield within the stablecoin ecosystem, which currently boasts over $240 billion in circulation and increasing adoption. Cap's solution involves a "first stablecoin engine to outsource yield generation in a programmatically and fully covered manner."

This innovative mechanism leverages shared security marketplaces, similar to EigenLayer and Symbiotic, to regulate the activities of financial operators. By doing so, Cap aims to allow both traditional finance institutions and crypto-native firms to generate yield for users without directly exposing those users to the inherent risks of their operations.

Cap is deploying its core protocol on shared security marketplaces on Ethereum, with a particular focus on MegaETH, described as the "world's first real-time blockchain" and part of the Mega Mafia ecosystem, of which Cap is also a member.

"Stablecoins bring the promise of crypto into the hands of institutions and people alike... Cap presents a novel solution to these problems with the first stablecoin engine to outsource yield generation in a programmatically and fully covered manner," Cap said, while keeping details of its yueld generation mechanism under wraps.