M0 Foundation, a platform building infrastructure for crypto apps and protocols to create application-specific stablecoins, today announced it has raised $40 million in early funding to allow developers to deploy custom digital currencies.

Polychain Capital, Ribbit Capital and the Endeavor Catalyst led the Series B funding round, bringing the company’s total funding to date to $100 million. Existing investors also participating in the round included Road Capital, Pantera and Bain Capital Crypto.

Stablecoins are a type of cryptocurrency that reduces the volatility of digital currency by “pegging,” or matching token value to a dollar, so a single coin is always worth $1. Stablecoins were first developed about a decade ago to allow reliable transactions using blockchain technology. They enable instant and affordable international payments, which can be significantly cheaper and faster than traditional methods such as wire transfers.

Most stablecoins are issued by centralized entities such as Tether Ltd. and Circle Internet Financial Inc., which provide tokens for purchase, sale and trade on public blockchains.

Founded in 2023, M0 aims to offer developers the opportunity to create their own applications using a stablecoin, without the need for a centralized issuer. The platform provides infrastructure that allows them to launch application-specific digital currencies.

To do this, M0 separates stablecoin reserve management from programmability. When stablecoins are created, they must be backed by assets held by the issuer, such as U.S. dollars or government bonds, that support the stablecoins in circulation. This reserve acts as collateral, allowing users to redeem the stablecoin for the underlying asset and provides confidence in the coin’s stability.

“We want to empower the builders of great fintech products to actually control the digital dollar stack they utilize,” said co-founder and Chief Executive Luka Prosperi. “The current incarnation of stablecoin technology isn’t fit for that purpose.”

Using the platform, developers can do more than place their own apps on top of another stablecoin, Prosperi said. It allows them to create and manage their own digital money by giving them the building blocks to specialize according to their business and application needs.

“Builders want more than just access to stablecoins — they want control over how programmable money moves, how it’s held, and how it creates real value for their users,” said Zack Rosen, a partner at Ribbit Capital.

M0 said its platform is already powering custom digital currency for well-known companies including ConsenSys Software Inc.’s leading crypto wallet MetaMask, app-specific blockchain Noble, stablecoin protocol Usual Labs and gaming platform Playtron Corp.

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