Tether-backed Stable protocol has officially launched its USDT-powered blockchain, StableChain. The launch also includes the introduction of a new governance foundation and a native token, marking a significant expansion of the stablecoin infrastructure.
The new layer-1 network, StableChain, is specifically designed for stablecoin transactions. It utilizes Tether's (USDT) for gas fee payments, thereby eliminating the need for volatile assets to process payments and ensuring greater stability in transactions.
In conjunction with the mainnet debut, Stable has introduced the Stable Foundation and its native governance token, STABLE. This structure separates network security from payment flows that are settled in USDT, providing a more robust and organized system.
This rollout follows a successful pre-deposit campaign that attracted over $2 billion from more than 24,000 wallets. The project also recently secured a $28 million seed funding round, with participation from crypto exchange Bitfinex, Hack VC, and other investors, including Tether CEO Paolo Ardoino, who serves as an adviser to the project.
The launch further strengthens the stablecoin infrastructure of Bitfinex and Tether, entities under the iFinex parent company. It also enhances the utility of USDT as a fundamental component of the network's architecture.
Brian Mehler, CEO of Stable, stated that the company has been actively engaged with governing bodies worldwide regarding the implementation of stablecoin and payment regulations.
The Expanding Role of Stablecoins in Digital Payments
The increasing prominence of stablecoins – digital tokens designed to maintain a stable value, often pegged to the US dollar – has prompted financial institutions, payment companies, and remittance providers like Western Union to re-evaluate their strategies.
However, many existing stablecoins operate on blockchains that were not originally built for high-speed, low-cost payments. For instance, Ethereum, which hosts a significant portion of the stablecoin supply, can take approximately three minutes to finalize transactions.
These limitations have fueled interest in blockchains specifically engineered for efficient stablecoin settlement.
In February, the stablecoin startup Plasma raised $24 million to develop a new blockchain for USDT. This funding round was led by Framework Ventures and supported by Bitfinex, Peter Thiel, and Tether CEO Paolo Ardoino. Plasma's mainnet beta went live on September 25, introducing its native XPL token.
In August, Circle announced its plans to launch Arc, an EVM-compatible layer-1 blockchain intended for enterprise-grade stablecoin payments, foreign exchange, and capital markets, expected to be released later this year.
The following month, payment giant Stripe revealed its intention to launch a new layer-1 network named Tempo. This decision followed comments from CEO Patrick Collison indicating that current blockchains are not adequately optimized to manage the growing volume of stablecoin and crypto activity on Stripe's platform.
According to data from DefiLlama, the total market capitalization of stablecoins has risen to approximately $308.45 billion, an increase of about 55% from $198.76 billion recorded a year ago.
