Franklin Templeton, a global asset manager with a growing presence in the crypto and blockchain investment market, has backed an $8 million seed round for Cap.
The asset manager led the investment round, with Ethereum (ETH) based stablecoin project Cap also attracting the participation of multiple leading web3-focused venture capital firms.
In details shared via X, Cap said the investment is a crucial step in its mission to offer a decentralized solution to the problem of yield generation in decentralized finance. This milestone involves the deployment of its protocol across “shared security markets” such as EigenLayer and Symbiotic.
“Cap is pioneering a first of its kind implementation of shared security markets like EigenLayer and Symbiotic to regulate the activities of financial operators. This allows traditional finance institutions and crypto-native firms to generate yield for users, while not directly exposing those users to the risks of their activities,” the protocol’s team posted on X.
Per the Cap protocol team, the project’s solution is available to users looking to tap into shared security marketplaces. This means users can benefit from staked assets on Ethereum. However, Cap’s main focus is the adoption on MegaETH, the layer 2 offering for real-time interaction with opportunities across the ecosystem.
It suggests safe and sustainable yield generation, something that could mean allowing for fresh innovation that beats the current yield-bearing stablecoins.
By being able to outsource yield generation through its stablecoin engine, Cap enables traction across a whole lot of blockchain applications, including DeFi protocols,real-world asset protocols, and liquid funds.
The $8 million seed round will help the stablecoin startup navigate the next phase of its adoption, with this adding to the $1.1 million raised via crowdfunding project Echo. Cap raised its latest financing round with the support of VC firms such as Triton Capital, Flow Traders, GSR and Japanese firm Nomura Group’s Laser Digital.
Read the full article here