Cap Secures $11M for Stablecoin Technology as Industry Grows

Key Points:

• Cap secured $11 million in funding from investors such as Franklin Templeton and Triton Capital to build its stablecoin platform.

• The funding will help support Cap’s system, which enables users to earn passive interest on stablecoins.

• Cap’s strategy involves combining traditional financial expertise with crypto-native approaches to generate yield beyond the typical crypto sources.

Cap, a protocol for yield-generating stablecoins, announced on Monday that it has secured $11 million in funding from prominent financial institutions, including Franklin Templeton and Triton Capital.

The total funding, announced after an $8 million seed round, will help develop Cap's stablecoin platform, which is set to launch later this year. Cap previously raised $3 million in an earlier round.

Stablecoins are cryptocurrencies whose value is linked to an external asset, like the U.S. dollar. Cap’s platform allows users to earn passive income, or yield, from these tokens.

Cap "gathers a team of specialists in yield generation to unlock opportunities that were once out of reach for the general public," Cap Labs stated in a press release.

"This yield doesn’t rely only on crypto-native methods like funding rate arbitrage and token farming but also on the expertise of traditional financial institutions such as high-frequency trading firms, private credit funds, and others capable of capturing large-scale yields."

The statement also mentioned that Cap will allow users to earn additional yield through restaking protocols like EigenLayer. Restaking protocols enable users to stake — or lock up — collateral to secure blockchain networks in return for rewards.

Cap’s funding announcement comes as stablecoins gain significant traction, with major players like banking giant Fidelity, President Trump’s World-Liberty Financial, and the state of Wyoming revealing plans to create their own stablecoins. Meanwhile, U.S. Congress is working on legislation to regulate stablecoins.