M0 Raises $40 Million for Stablecoin Infrastructure Platform

M0 has raised $40 million for its platform, which lets crypto apps and protocols create application-specific stablecoins.

The company’s Series B round, announced Thursday (Aug. 28) in a news release provided to PYMNTS, was led by Polychain Capital, Ribbit Capital and Endeavor Catalyst Fund, as well as existing investors including Road Capital, Pantera and Bain Capital Crypto.

Founded in 2023, M0’s leadership is made up of veterans from crypto firms such as MakerDAO and Circle. The company says it takes a “first-principles approach” to redefining stablecoin infrastructure.

“Rather than offering a single branded stablecoin under a centralized issuer model, M0 provides the foundational rails to launch application-specific digital dollars that are customizable, interoperable, fully onchain, and managed by a network of issuers,” the release said.

“M0 separates stablecoin reserve management from programmability. Regulated entities connect to the platform to hold and manage reserves, while developers use the platform to control how their stablecoins function: defining who can mint, hold, transfer, while tailoring new revenue streams and loyalty opportunities.”

According to the release, the platform is designed so that each dollar issued on it operates on a common layer, unifying liquidity across the ecosystem even as new, specialized stablecoins emerge. Luca Prosperi, co-founder and CEO of M0, said the company’s goal is to help FinTechs control the digital dollar stacks they utilize.

“Builders want the ability to customize the technology, they want choice over their issuance options, and they want interoperability and unified liquidity,” he said.

“Centralized issuance and simple white-labeling models are far from enough. M0 has opted for a first-principles design that delivers precisely on what builders need.”

The funding announcement comes one week after M0 teamed with Stripe-owned stablecoin issuance platform Bridge to help MetaMask launch its own stablecoin.

In other stablecoin news, PYMNTS wrote earlier this week about the troubles that finance officers, treasurers, and payments executives have with embracing the digital currencies.

These headaches include the “messy and fragmented” infrastructure underpinning stablecoins, including the proliferation of blockchains, the lack of interoperability between wallets, and the absence of common settlement rails.

“Unlike dollars in the bank, stablecoins don’t sit neatly in one place,” that report said. “They’re scattered across competing blockchains, wallets and exchanges, each with their own technical quirks and settlement rules. For treasurers, that can create friction in the very efficiency story stablecoins are supposed to deliver.”