Cap Raises $11M to Fuel Stablecoin Engine as Industry Grows

Cap Raises $11M to Develop Stablecoin Engine as Sector Gains Popularity

The recent $8 million funding round will go towards the creation of the Cap stablecoin, which is scheduled to launch later this year.

Author: Margot Nijkerk | Edited by: Sam Kessler Updated: Apr 7, 2025 9:33 PM Published: Apr 7, 2025 1:30 AM

Key points:

• Cap has raised $11 million from investors like Franklin Templeton and Triton Capital to build its stablecoin engine.
• The funds raised will be used to support the Cap platform, which allows users to earn passive income on stablecoins.
• Cap's strategy involves using traditional finance expertise to generate income outside of its crypto assets.

Cap, a yield-based stablecoin protocol, announced on Monday that it has raised $11 million in funding from major financial institutions including Franklin Templeton and Triton Capital.

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The total funding — announced as part of a recent $8 million seed round — will be used to develop the Cap stablecoin, which is set to launch later this year. Cap raised $3 million in its previous funding round.

Stablecoins are a type of cryptocurrency whose value is directly tied to another asset, such as the US dollar. The Cap platform is designed to allow users to earn passive interest — or income — on the tokens.

Cap Labs said in a press release that it “utilizes a team of operators with specialized crop production skills to democratize access to crops previously unavailable to the masses.”

“This income relies not only on cryptocurrency’s own sources, such as rate arbitrage funding and token farming, but also on the expertise of traditional institutions, including HFT firms, private credit funds, and other organizations that can generate large returns.”

According to the statement, Cap will offer users the ability to earn additional profits through restaking protocols such as EigenLayer. Restaking protocols allow users to stake — or lock — collateral to support blockchain protocols in exchange for rewards.

The news of Cap's funding comes as stablecoins are gaining popularity, with banking giant Fidelity, President Trump's World-Liberty Financial, and the state of Wyoming all expressing intent to create their own stablecoins, while the U.S. Congress is focused on passing stablecoin legislation.

Read more: Stablecoin market cap tops $200B as US seeks to maintain dollar dominance

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