M0 has raised $40 million in a Series B funding round led by Polychain Capital and Ribbit Capital. Other VCs involved in the round include Endeavour, Pantera and Bain Capital Crypto.
The company aims to create a foundational layer for stablecoin issuers, allowing them to deploy application-specific stablecoins without the complexities of building their own software for cross-chain asset transfers.
Competitors that also offer whitelabelling and similar infrastructure products for institutions include Brale, Paxos and Agora.
Co-founder and CEO Luca Prosperi expressed the company’s vision by stating:
We cannot have 1,000 different Tethers and Circles. So what we did is create a layer where different issuers can come and connect and just ensure interoperability, liquidity among themselves.
The company has a recorded supply of 300 million whitelabelled stablecoins for third parties, including Usual, Noble and MetaMask, with a 102% overcollateralized ratio of $307 million.
This is similar, although to a much lower degree, to Tether’s USDT stablecoin, which is also overcollateralized reserves.
M0’s infrastructure could play a crucial role in shaping the future of financial transactions, making stablecoins more accessible and functional for a variety of applications.
