Google wasn’t the first successful search engine. Nor was Facebook the first runaway social network. Tether and Circle’s USDC might be considered first generation stablecoins. Could a new wave of stablecoins usurp them? Tether reported a Q1 profit of $4.52 billion, a runaway success for a tiny team. The question is whether that is sustainable.
Luca Prosperi, CEO of M^0 Labs, believes he has the formula for the next generation of stablecoins. He makes grand claims such as the M^0 protocol becoming the central bank of stablecoins. While big visions are not unusual in the cryptocurrency world, there are hints that this one might be more than hot air. For starters, the protocol infrastructure has only just launched and has no material traction, yet it managed to raise two funding rounds of $22.5 million and $35 million, with the latter led by Bain Crypto with participation from major market makers.
Two other aspects grabbed our attention. Firstly, the M^0 protocol is a decentralized one. The M stablecoin issuance is federated to multiple approved ‘minters’ who are expected to comply with their local regulations.
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