Plasma is a proof of stake (PoS) Layer-1 blockchain specifically designed for stablecoins, XPLbling near-instant, fee-free stablecoin transactions with institutional-grade security.

Project Function

High Throughput & Fast Finality: The Plasma chain uses a custom PlasmaBFT consensus (derived from Fast HotStuff) to achieve thousands of transactions per second and ~1 second block times, allowing rapid and efficient settlement for stablecoin payments.

EVM Compatibility: Plasma is fully Ethereum-compatible – developers can deploy existing EVM smart contracts on Plasma with no code changes. The network’s execution layer (based on Ethereum’s Reth client) supports all typical Ethereum tools (Hardhat, Foundry, MetaMask, etc.) out of the box.

Zero-Fee USDT Transfers: Plasma XPLbles fee-free transfers of Tether (USDT) by sponsoring gas costs at the protocol level. A built-in paymaster covers gas for USDT transactions, so users can send stablecoins without paying fees or holding the native XPL token – ideal for frictionless remittances and micropayments.

Custom Gas Tokens: The platform supports custom gas payment options, allowing transaction fees to be paid in whitelisted assets like USDT or BTC (not only in XPL). This flexibility simplifies the user experience by letting users pay network fees using familiar stablecoins or other supported tokens.

Confidential Transactions: Plasma includes support for confidential payments, XPLbling users to send transactions without revealing sensitive details (amounts, etc.) publicly. This feature provides privacy for stablecoin transactions while remaining compliant, adding an extra layer of confidentiality to payments.

Native Bitcoin Bridge: The network has an integrated BTC bridge that is trust-minimized and built into the protocol. Users and developers can move Bitcoin onto Plasma’s chain without relying on centralized custodians, unlocking use cases that combine stablecoins with BTC in a decentralized manner.

Integrated Financial Infrastructure: Beyond the blockchain itself, Plasma offers out-of-the-box integration with key financial services. Developers have access to third-party powered modules for card issuance, global on/off ramps, stablecoin treasury management/orchestration, and advanced risk & compliance tools.

Token Utility 

XPL is the network’s native token and can be used in the following ways:

Network Security (Staking): XPL underpins Plasma’s Proof-of-Stake security. Validators must stake XPL to participate in block validation and consensus, which secures the network. In return, they earn protocol rewards in XPL for processing transactions and maintaining Plasma’s high-performance, stablecoin-optimized blockchain.

Transaction/Gas Fees: XPL can be used to pay for transaction fees on the network.

Governance and Protocol Alignment: By staking and participating in validation, XPL holders gain influence over certain protocol decisions. For example, any adjustments to Plasma’s inflation rate or validator reward schedule require approval through a validator (staker) vote, meaning XPL stake translates to governance power in network upgrades or economic parameters.

About The Founders

Paul Faecks is the Co-Founder and CEO of Plasma. Before Plasma, Paul co-founded Alloy, an institutional digital asset operations platform, in August 2021. Paul also at Deribit, specifically with the Deribit Insights team, from July 2020 to October 2021.

Christian Angermayer is the Co-Founder of Plasma. Prior to Plasma, Christian was the co-founder of Cryptology Asset Group, a European investment holding company for blockchain and crypto-related businesses, launched in partnership with Mike Novogratz. He alsois the founder of Apeiron Investment Group, his private investment firm (family office) which focuses on life sciences, fintech, AI, and cryptocurrency ventures.

Risks of XPL

Like an investment in other crypto assets, there are some general risks to investing in XPL. These include:  (i) volatility risk and liquidity risk, (ii) short history risk, (iii) demand risk, (iv) forking risk, (v) code defects, (vi) regulatory risk, (vii) electronic trading risk, and (viii) cyber security risk. For additional information of these and other general risks associated with crypto assets and Uphold’s platform, please refer to the Risks Specific to Holding Digital Assets statement.

In addition to these general risks, an investment in XPL is subject to the following specific risks:

XPL operates using smart contracts, which have an association with vulnerabilities and security breaches. Despite undergoing successful audits by well-regarded third-party entities, it is essential to acknowledge the existence of inherent risks. 

We emphasize that this Crypto Asset Statement is not an exhaustive description or summary of all risks associated with XPL. Investors should conduct their own research and perform their own assessment before trading any crypto asset to determine the appropriate level of risk for their personal circumstances.

The XPL community and Plasma founding team are not under any legal or regulatory obligation to disclose material information to the public regarding its activities. Holders of XPL have no recourse to the XPL community, Plasma founding team, or Uphold if XPL declines in value for any reason.

Changes to applicable law may adversely affect the use, transfer, exchange, or value of any of your crypto assets, and such changes may be sudden and without notice.

Uphold’s Evaluation Process

Prior to listing XPL on the Uphold Platform, Uphold performed due diligence on XPL and determined that XPL is unlikely to be a security or derivative under relevant securities legislation. Uphold’s analysis including reviewing publicly available information on the following: 

The creation, governance, usage, and design of XPL, including ensuring the source code is open-source, audited and peer reviewed, security, and roadmap for growth in the developer community. 

The supply, demand, maturity, utility, and liquidity of XPL.

Any marketing materials put forward by the XPL social team including on, Twitter, Medium blog, LinkedIn posts, Discord and Telegram channels.

Material technical risks associated with XPL, including any code defects, security breaches and other threats concerning XPL and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them.

Legal and regulatory risks associated with XPL, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of XPL.