Codex, a blockchain startup, has raised $15.8 million in seed funding to build a dedicated layer-2 network for stablecoins. The seed round was led by Dragonfly Capital, with nearly fourteen million dollars contributed by the firm.
Additional investors included Coinbase, Circle, Cumberland Labs, Wintermute Ventures, and several other firms. Codex will use the funds to build a stablecoin-focused blockchain that aligns with regulatory standards.
Founder Vision and Background
Haonan Li, the cofounder and CEO of Codex, has deep industry experience. He began working on stablecoins long before the current industry buzz emerged.
After graduating from the University of Pennsylvania in 2019, Li worked at a quantitative trading firm.
He became disillusioned with making money without purpose and sought more meaningful work. Li co-founded Codex with Victor Yaw and Momo Ong to build innovative blockchain solutions.
Also Read: Tether CEO Says USDT Unfazed By Potential US Ban Despite New Stablecoin Legislation
Innovative Technology Approach
Codex plans to build a layer-2 stablecoin chain on top of Optimism for enhanced efficiency. The platform is optimized specifically for stablecoins and offers predictable fees during transactions.
Codex has built off-ramps to allow users to convert stablecoins into traditional currencies easily. The startup is working on confidential transaction features to protect user privacy on the blockchain.
Li believes that general-purpose blockchains cannot match the efficiency of single-purpose platforms designed for specific markets.
Market Trends and Future Outlook
The stablecoin market has grown despite harsh conditions in the broader crypto industry. Stablecoin supplies increased by t$30 billion during the first quarter, according to market reports.
The total market capitalization of stablecoins now nears $230 billion. Investors see stablecoin networks as a key infrastructure for the growing digital payments ecosystem.
Other projects, such as 1Money, have also raised funds to develop stablecoin payment platforms this year. Brian Shroder of 1Money envisions a future where stable assets extend beyond the U.S. dollar.
Codex’s recent funding round highlights a strong interest in stablecoin-specific blockchain networks and innovation. The startup’s unique approach may set new standards for stablecoin transactions and regulatory compliance.
Codex is prepared to lead the market with advanced technology and secure, predictable fees. The company continues to work on confidential transactions and efficient offramps to support users worldwide.
Investors and industry experts remain optimistic about the future of stablecoin networks and innovation. Codex aims to provide a stable, secure infrastructure that meets the demands of a changing digital economy.
Also Read: PayPal & Google Cloud Partner With Coinbase To Use Stablecoins For B2B Payments