MZero Raises $35M in Series A Funding Led by Bain Capital Crypto
M^0 (pronounced “M Zero”), a decentralized stablecoin minting protocol, has raised $35 million in a Series A funding round led by Bain Capital Crypto. The funding round closed in early May with investors like Galaxy Ventures, Wintermute Ventures, GSR, Caladan, and SCB 10X participating.
Equity Plus Tokens: POWER and ZERO
The Series A funding round was structured as equity plus tokens. M^0 issued two “governance tokens” — POWER and ZERO — to investors with a lock-in period. Luca Prosperi, the president of the M^0 Foundation Council, mentioned that the lock-in period aligns with “prudent business and regulatory practices.” The valuation of the project was not disclosed.
MZero’s Funding History
M^0 previously raised $22.5 million in a seed funding round led by Pantera Capital in April 2023. With the Series A round, M^0 has secured a total of $57.5 million in funding. Prosperi highlighted that demand for the round exceeded the amount raised by 2.5 times.
Introduction to MZero Protocol
M^0 is a stablecoin minting protocol built on Ethereum, where approved entities can generate a stablecoin known as M. The M token is overcollateralized with U.S. Treasuries exclusively. To mint M tokens, entities require permission from the protocol’s governance and need to provide standardized high-quality collateral, verified by independent validators.
- Entities must comply with M^0’s adopted guidelines.
- A network connecting compatible issuers – Agora and Mountain – enables minting according to M^0 standards.
- Reserves for the stablecoin must be stored in bankruptcy-remote vehicles managed separately from minters, validated and published daily by approved validators.
MZero Launch and Expansion
The M^0 protocol is set to debut on Ethereum initially, with future plans for availability on other Layer 1 and Layer 2 networks. The team of over 50 individuals, led by former MakerDAO and Circle employees, is also working on a multichain strategy. Prosperi aims to further expand the team across various functions, including engineering, legal, business development, and operations.
- Team led by former MakerDAO and Circle employees.
- The M stablecoin could be introduced on other networks as part of a multichain strategy.
- Plans to expand the team to cover different functions within the project.
Strategic Partnerships and Board Seat
Bain Capital Crypto, a significant investor in the Series A round, secured a board seat at M^0, joining other partners like Pantera Capital, Road Capital, and AirTree. The involvement of these stakeholders highlights the strong foundation and potential growth of the project.
Hot Take: The Future of M^0 and Stablecoin Infrastructure 🚀
M^0’s successful Series A funding round, totaling $35 million, marks a significant milestone for the decentralized stablecoin minting protocol. With support from prominent investors like Bain Capital Crypto and plans to expand its offering to additional blockchain networks, M^0 is poised for growth and innovation in the stablecoin space. The commitment to regulatory compliance and high-quality collateral sets a robust foundation for M^0’s future success in the evolving crypto landscape.
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