In a significant move within the blockchain and cryptocurrency space, Cap, a stablecoin company, has secured $11 million in seed funding from a group of investors, including asset management firm Franklin Templeton.
The investment round also attracted participation from trading firm Susquehanna, investment firm Triton Capital, and market makers such as Flow Traders, Nomura’s Laser Digital, GSR, and IMC Trading.
While Cap’s valuation remains undisclosed, the funding signals strong confidence in its vision to revolutionize the stablecoin market.
Cap aims to launch an innovative interest-bearing stablecoin and an accompanying lending marketplace in the coming months, according to CEO and founder Benjamin Sarquis Peillard.
Unlike traditional stablecoins, which are pegged to fiat currencies like the U.S. dollar to maintain a stable value, Cap’s offering will allow users to earn interest on their holdings.
This feature sets it apart in a rapidly evolving sector where stablecoins are increasingly adopted for payment settlements by companies and financial institutions.
The lending market addresses a critical need for liquidity among asset managers, market makers, and other financial players.
Cap’s platform will enable institutions like Franklin Templeton to borrow stablecoins from users who deposit collateral, with interest paid to the lenders.
Sarquis Peillard explained in an interview with Fortune:
“We have these institutions that come into our marketplace and take the collateral that users deposited and borrow from them.”
This model positions Cap as a bridge between traditional finance and decentralized blockchain technology.
What arguably makes Cap’s stablecoin unique is its non-custodial approach.
Unlike some competitors, Cap sys it will not hold users’ assets.
Instead, it will leverage smart contracts—self-executing digital agreements—to manage transactions securely and transparently. This design aims to protect users from mismanagement risks.
Additionally, Cap will mandate loan insurance for borrowers, ensuring timely and full repayment even in cases of default.
The interest rate for users will vary with market conditions, with Cap taking a 10% fee on the yield generated.
Currently in the testing phase, Cap’s technology is slated for a public launch in May of this year.
The $11 million raised will bolster security measures to safeguard against hacking and support hiring efforts to further expand the professional team.