M0 Project Raises $35M Series A, Completes System Launch, Enters Limited-Availability Phase
After almost 18 months of intensive planning, design and development from dozens of project members and entities spread all over the world, the M0 system is now live.
Just a few weeks ago, both the M0 core protocol as well as the Two-Token Governor system were deployed on Ethereum Mainnet. Governance participants voted on the initialization of protocol parameters, as well as the permissioning of the first actors in the M0 federation: the first Minter and the first Validator.
To summarize how the M0 ecosystem works, any entity can apply towards governance to become a Minter in the network. The entity is expected to abide by network rules, standards and guidance, such as using the accepted form of collateral (currently short-term US treasuries) and contracting with appropriate collateral management and Validator partners. Once the Minter entity is permissioned by governance, they move collateral into a compatible special purpose vehicle. The Minter then requests a permissioned Validator to sign a proof of settled collateral, which Validators can do by using standard M0 off-chain software. Once a valid signed proof of collateral is present, the Minter proceeds to minting an allowed amount of $M. In the M0 system, Minters pay a network fee to utilize the protocol, but keep a competitive share of the return on the collateral assets they bring to the network. This federated model is unique in the stablecoin space, allowing actors to leverage the network effects and liquidity of a fungible stablecoin while retaining the value they create. This contrasts with the prevailing model, where entities doing stablecoin distribution must choose between building their own infrastructure with siloed liquidity or ceding the backend economics to a third party.
The $M stablecoin minting and redemption services are now live in a limited availability phase via the first Minter on the network, with key distribution partners and DeFi venues being integrated. In parallel, the M0 Foundation is now intending to stimulate broader applications to Minter and Validator roles. During this phase, Minter roles should be particularly attractive for market makers and centralized crypto exchanges, while Validator roles are suitable for oracle service providers as well as attestation and auditing firms. Interested parties should get in touch to learn more about participation and its application process.
In conjunction with the launch of the M0 network, we are excited to announce that core ecosystem entities have closed a Series A funding round totalling $35 million, led by Bain Capital Crypto. In addition to Bain, the Series A round and launch phase drew support from M0’s existing investors, as well as strategic partners such as Galaxy Ventures, Wintermute Ventures, GSR, Caladan and SCB 10X. The M0 project previously raised $22.5 million in seed funding led by Pantera Capital in early 2023.
"Stablecoins are the largest and fastest growing asset for settlement on public blockchains today. We expect this market to continue to grow quickly to trillions of dollars over the next decade. M0 is taking a unique approach, with lessons from MakerDAO to form a new decentralized stablecoin collateralized exclusively by short-term treasuries. We are impressed with the M0 team's mix of stablecoin, DeFi and traditional finance expertise, and we’re excited to support them in this next phase of growth," said Stefan Cohen, Partner at Bain Capital Crypto.
“We are transitioning from an outdated monetary infrastructure dominated by large, centralized parties, to a much more modern, federated framework for cryptodollar issuance. We reject a future cluttered with non-interoperable and riskier forms of money,” added Prosperi. “This Series A funding, backed by some of the very best partners in the industry, will drive the entities within the emerging M0 ecosystem to build the middleware for a new global federation of reputable money issuers and distributors.”
We welcome the M0 protocol to Ethereum Mainnet and look forward to the first wave of network growth.
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About M0
M0 is the universal platform powering builders of application-specific stablecoins. With M0, developers can build safe, programmable and interoperable digital dollars.
Disclaimer: Please be advised that nothing in this post is intended to be financial or legal advice. Please always do your own research and due diligence.