Franklin Templeton, a prominent global asset manager venturing into the crypto and blockchain investment landscape, has participated in an $8 million seed funding round for Cap.
The firm took the lead in this investment round, which also garnered attention from several top web3-focused venture capital firms, focusing on the Ethereum (ETH) based stablecoin initiative Cap.
Details shared on X indicate that this funding is a significant advancement in Cap’s goal to provide a decentralized approach to yield generation in decentralized finance. This important milestone marks the rollout of its protocol across “shared security markets” such as EigenLayer and Symbiotic.
“Cap is leading an innovative implementation of shared security markets like EigenLayer and Symbiotic to oversee the activities of financial operators. This enables both traditional finance institutions and crypto-native companies to generate yield for users without directly exposing them to the associated risks,” the protocol team mentioned on X.
According to the Cap protocol team, their solution serves users eager to engage with shared security markets, allowing them to leverage staked assets on Ethereum. However, Cap primarily aims to drive adoption on MegaETH, its layer 2 solution designed for real-time engagement with various opportunities across the ecosystem.
This approach advocates for safe and sustainable yield generation, potentially paving the way for fresh innovations that could outperform existing yield-generating stablecoins.
Through its stablecoin engine, Cap facilitates yield generation across numerous blockchain applications, including DeFi protocols, real-world asset initiatives, and liquid funds.
The $8 million seed funding will bolster the stablecoin startup as it moves into the next stage of its adoption, complementing the $1.1 million previously raised through the crowdfunding initiative Echo. Cap’s latest financing round also saw backing from VC firms such as Triton Capital, Flow Traders, GSR, and Japan’s Nomura Group’s Laser Digital.