What Are Plasma and Stable?

By 2025, stablecoins have moved far beyond the crypto-native crowd. They’ve gained traction among retail users, large corporations, and even national governments — becoming a mainstream financial tool with global appeal.

The total market capitalization of the stablecoin sector now exceeds $240 billion — an all-time high. Tether’s USDT remains the dominant player, commanding over 60% of the market.

These tokens currently operate on general-purpose blockchains like Ethereum and Tron — platforms not specifically optimized for stablecoins and often plagued by technical bottlenecks during high-volume usage.

Plasma and Stable aim to tackle this challenge by creating niche networks tailored to provide a superior experience for stablecoin operations:

• Plasma is a Layer 1 blockchain fully compatible with the Ethereum Virtual Machine (EVM) Plasma and Stable aim to tackle this challenge by creating niche networks tailored to provide a superior experience for stablecoin operations. The project has raised $24 million from Peter Thiel’s Founders Fund, Bitfinex exchange, Tether CEO Paolo Ardoino, and other investors.
• Stable is another network announced in June 2025, having been quietly developed in stealth mode for about a year prior. That same month, the team secured funding from Bitfinex, USDT0, and Gabriel Abed, although the amount has not been disclosed. 

While both projects officially operate independently and develop their technology autonomously, they are likely indirectly connected to the Tether ecosystem, given their backing from Bitfinex. Stable, in particular, is exclusively focused on USDT.

It wouldn’t be surprising if these networks emerged as part of Tether’s rapidly evolving ecosystem — designed to provide the issuer with robust technical infrastructure.

At first glance, Plasma and Stable might seem like clones. Both declare similar goals and aim to solve the same problem by launching their own networks. However, in reality, they occupy distinct niches, which is reflected at every level — from the underlying technology to the products they offer.

How Plasma Works?

Important note: at the time of writing, both Plasma and Stable have only released preliminary documentation. Many technical details remain undisclosed, making it difficult to form a complete assessment of the projects.

Plasma is positioned as an independent Layer 1 blockchain fully compatible with the Ethereum Virtual Machine (EVM). However, in a sense, it also functions as a Bitcoin sidechain. The network periodically records a hash of its state into Bitcoin blocks — a mechanism designed to ensure the immutability of the network’s state.

The connection to Bitcoin is further reinforced through a native bridge, enabling users to transfer cryptocurrency into Plasma as wrapped tokens. The security of this bridge, alongside the network’s consensus mechanism, will be maintained by Plasma validators.

The blockchain employs its own consensus algorithm called PlasmaBFT, based on the HotStuff protocol. This ensures high throughput by streamlining transaction agreement processes among nodes. Notably, the network can continue operating securely even if more than 33% of validators are compromised.

Initially, security will rely on a limited set of trusted nodes, but the project plans to transition toward an open architecture as it matures.

For end users, Plasma introduces a unique hybrid execution system built on two operational layers:

• The first layer handles standard transactions, interactions with smart contracts, and priority payments. These actions require users to pay a transaction fee.
• The second layer is reserved for simple stablecoin transfers without metadata. These will be processed free of charge, but only on a queued basis.

Users can choose: send tokens for free and wait, or pay a fee for instant processing. To prevent free transactions from overwhelming the blockchain, the Plasma team plans to introduce several controls: transaction frequency limits, minimum sender balance requirements, and enforced ordering at the consensus level. 

Another noteworthy feature is shielded transactions, which allow users to hide details of their transfers.

Technical details about this feature have not yet been disclosed. However, the documentation emphasizes that it will be implemented “in full compliance with regulatory requirements” — suggesting the possibility of data being accessible to authorities upon request. This clarification likely reflects growing regulatory pressure on anonymous crypto transactions in certain jurisdictions.

The economic backbone of the Plasma network is the native cryptocurrency XPL. It is required to run validator nodes, participate in staking, and pay network fees. However, the project’s tokenomics remain undisclosed at the time of writing.

That said, everyday users won’t need to hold XPL to make transactions. According to the team, the protocol will support gas payments in “popular cryptocurrencies like USDT and Bitcoin,” enabling a smoother user experience without forcing token conversions.

An Open Approach

Plasma isn’t being positioned strictly as a USDT-exclusive blockchain — though USDT will likely benefit from special treatment such as gas-free transfers. Thanks to full EVM compatibility, the network can support a wide range of Ethereum-based tokens and protocols.

Evidence of this open approach can already be seen in a recently announced partnership with a stablecoin issuer pegged to the Turkish lira. This suggests that additional assets and projects are expected to join the network in the near future.

BiLira will be a day-one launch partner.

The largest Lira stablecoin and one of Turkey’s top exchanges will be live at mainnet beta.

Trillions.

— Plasma (@PlasmaFDN) May 8, 2025

In theory, Plasma could support a wide variety of stablecoins and tools built around them — from liquidity pools and lending platforms to collateralized token issuance and more.

Another potential use case is DeFi infrastructure for Bitcoin. Thanks to the native bridge, Bitcoin holders will be able to access the entire Plasma ecosystem using wrapped BTC — either from Plasma itself or other supported protocols.

But if Plasma is shaping up to be a universal stablecoin hub, it raises a key question: why are Bitfinex and Paolo Ardoino backing what appears to be a near-identical project — or even a potential competitor?

Stable — the Same Idea, Just More Focused?

Stable is being developed as an independent Layer 1 blockchain, purpose-built for handling USDT transactions. More specifically, it’s designed around USDT0 — though we’ll dive deeper into that distinction a bit later. 

The network uses a custom consensus algorithm called StableBFT, built on top of CometBFT. This allows for high-speed transaction processing with sub-second finality. Looking ahead, the team plans to upgrade to a DAG-based protocol named Autobahn, which is expected to push throughput beyond 200,000 transactions per second and cut finality time by 50%.

Stable’s consensus mechanism will follow a Delegated Proof-of-Stake (dPoS) model — meaning a limited set of validators, chosen by delegates, will be responsible for verifying transactions and producing blocks. These validators will earn rewards in the form of transaction fees.

While the Stable network is fully compatible with the Ethereum Virtual Machine (EVM), it achieves this not at the core protocol level like Plasma, but through a dedicated module called StableEVM — essentially, an additional layer built on top of the main network.

Additionally, the team has developed so-called precompiles — special smart contracts that grant access to core network functions. For example, they enable the creation of USDT on the desired blockchain.

Looking ahead, Stable plans to launch StableVM++ — a high-performance EVM implementation featuring optimistic parallel transaction processing powered by Block-STM technology.

From the user’s perspective, Stable’s standout feature is using USDT as the native gas token. To make this work, the developers introduced gasUSDT — essentially a behind-the-scenes tool for paying fees.

When users make transactions, the required amount of USDT is automatically converted into gasUSDT via a smart contract managed by Stable DAO. Meanwhile, the team promises that peer-to-peer transfers will remain free of charge.

An additional feature offered by Stable is guaranteed blockspace, designed with businesses in mind. According to the developers, this will allow corporate clients to execute transactions regardless of overall network congestion.

Like Plasma, Stable supports shielded transactions that include the option to disclose data for regulatory compliance. Notably, the team highlights adherence to KYC/AML standards. Given the specifics of USDT0 (which we will discuss later), it’s possible the network could integrate with Bitfinex’s verification services.

Another standout aspect of Stable is its own “Web2.5 wallet”, aimed at delivering a smooth and user-friendly experience. 

This solution will allow users to import existing blockchain addresses or create new ones by logging in through social media accounts. The product will also introduce a Stable Name system — similar to domain names — which converts long wallet addresses into easy-to-remember aliases.

USDT “On Steroids”

As mentioned earlier, the only asset native to the Stable network will be USDT0  — an OFT-standard token issued via LayerZero.

Interestingly, USDT0 is not actually minted by Tether itself, but by an entity called Everdawn Labs. Access to this token is strictly controlled: it can only be obtained on the  Bitfinex platform after account verification. This level of access control points to high centralization and a strong focus on regulatory compliance. 

USDT0 effectively transforms Stable into an on-chain hub, enabling seamless token transfers across any LayerZero-supported networks. The project also facilitates gasless conversion of USDT0 into regular USDT compatible with the target blockchain. 

Essentially, this opens up access to Tether’s aggregated liquidity and significantly broadens the user base. Holding USDT0 allows for seamless transfers to virtually any network that supports USDT — acting like a blockchain equivalent of SWIFT.

Moreover, USDT0 serves as a bridge between Stable and Plasma. The Plasma developers have confirmed support for the token from day one, potentially simplifying the movement of users and funds between the two networks.

What Does This Mean in Practice?

Despite sharing a similar mission, Plasma and Stable have taken different approaches to the challenge. To put it in traditional finance terms:

• Plasma is the “blockchain standard” for stablecoins. Its architecture interacts directly with Bitcoin while maintaining full EVM compatibility, laying the foundation for a broad and versatile ecosystem.
• Stable is a high-speed payment infrastructure, seemingly managed—either directly or indirectly—by Tether and Bitfinex. Its target audience is traditional finance (TradFi) clients looking for a convenient alternative to bank transfers, and possibly banks themselves seeking infrastructure modernization.

Plasma’s features make it more appealing to crypto-native users interested in DeFi and other blockchain tools for stablecoins.

Stable, meanwhile, aims to attract users beyond the crypto sector. It remains unclear whether it will pursue this independently—through its wallet and direct marketing—or delegate outreach to partner companies.

This also ties into the broader trend toward niche blockchains. Hyperliquid demonstrated that a network tailored to specific needs can compete with centralized trading platforms. Now, it’s stablecoins turn.

To continue the comparison, Stable can be seen as the “original” Hyperliquid, while Plasma resembles HyperEVM — featuring an open architecture and support for widely adopted technical standards.

Overall, building specialized infrastructure for stablecoins lays the groundwork for the market’s and industry’s future growth:

• Users gain an accessible and user-friendly tool for storing and transferring value;
• Developers can build applications without the limitations of legacy networks;
• Traditional businesses get a regulated and convenient bridge to digital assets. 

And the fact that all of this will be powered using USDT could give Tether a significant edge over its competitors.