Plasma's vision is very clear: global commerce will gradually shift towards stablecoins, and Plasma will become an important driving force behind this transition.

Compiled & Edited by: Deep Tide TechFlow

Guest: Paul Faecks, Plasma CEO

Host: Andy; Robbie

Podcast Source: The Rollup

Original Title: How Plasma Plans To Win The Trillion Dollar Stablecoin Battle - CEO Paul Faecks

Broadcast Date: September 28, 2025

Key Points Summary

On the day after the launch of the Plasma mainnet and the XPL token, The Rollup spoke with Plasma CEO Paul Faecks to discuss the following topics:

• Airdrop and XPL distribution strategy

• 280 million Binance users earning on-chain

• Vision for the XPL token

• Plasma One: New banking services for the unbanked

• Competing with Visa in a market cap exceeding $50 billion

• Why "scalability" will be different in five years

• Tether partnerships and the dominance of USDT

Highlights

• The most important decision in token distribution and allocation is to enter the market in an open manner, allowing more people to participate. Investing $1 on-chain could yield a return of $10,000, which aligns with our operational philosophy.

• Before the mainnet launch, we established a significant revenue partnership with Binance. Through this partnership, users can deposit directly from Binance's platform to Aave on Plasma.

• Relying solely on the native user base of the crypto space is not a sustainable model; we need to drive real organic usage. We cannot just depend on incentive mechanisms to attract users; we must ensure that the platform itself is attractive and meets users' real needs.

• We have always hoped that this could ultimately become a community-driven project. I believe the decisions made regarding token distribution and allocation are fundamentally based on this idea, aimed at making the entire ecosystem more aligned with community needs.

• Stablecoins are at the beginning of a turning point in the industry. The total amount of stablecoins circulating in the market is currently around $260 billion to $270 billion, and we believe this market will eventually reach the trillion-dollar level.

• I believe that dedicated stablecoin chains will emerge in the future, with stablecoins on these chains totaling hundreds of billions of dollars, and daily trading volumes potentially reaching trillions of dollars.

• Stablecoins have become a core strategic tool in global dollar monetary policy because they can attract buyers who have no preference restrictions on debt pricing.

• The entire design of the XPL system is closely tied to the interests of the community, while ensuring that the XPL token plays a core role in the ecosystem.

• Plasma's vision is very clear: global commerce will gradually shift towards stablecoins, and Plasma will become an important driving force behind this transition.

• We have always built Plasma around the USDT ecosystem. While we support a multi-stablecoin world, Tether's market dominance and extensive distribution network are very difficult to replicate.

Reflections After XPL Launch

Andy:

Paul, tell us about the past few days. How does it feel?

Paul:

It has been really intense. We have been busy all week because launching a blockchain is not as simple as just opening a network. There are many dynamic factors involved, including some external variables that we cannot fully control. So, it has truly been a week of immense pressure. However, so far, everything has gone smoothly, and we are very happy. But everyone was indeed exhausted last night.

Robbie:

What do you think was the most difficult part? Do you think the hardest phase is behind you now?

Paul:

Not at all. I think the real challenges are still ahead. We have just announced the Plasma One product, and this is clearly just part of the work before launching the chain. I feel this is actually the starting point for us to truly begin building our vision. While the chain itself, the DeFi ecosystem, and the exchange components are all very important, there is still much work ahead of us.

Andy:

Now, we want to understand your future vision, such as how you plan to develop your product line and how you view the future direction of the chain. Clearly, due to the pre-deposit mechanism design, Plasma has already attracted a lot of activity and attention. Before we delve into the future, I have a question: Why did you decide to use the mechanism where pre-depositing USDT would qualify users for the XPL token airdrop? For example, the allocation to users who deposit in advance has already sparked a lot of excitement online. Some even say that if you invest $1 on-chain, you might receive $10,000 in return.

Of course, the reality is that not everyone can operate at that ratio, but many users have indeed benefited. I think you have successfully avoided some of the negative public opinion that such mechanisms can often provoke. How did you achieve this? Why choose this method to reward the Plasma community and Plasma Collective? What is the logic behind this design?

Paul:

I think this is very consistent with our operational approach. For example, we set very clear and transparent parameters during the public sale, allowing anyone to participate. This is very important to us because we want to enter the market in an open manner, allowing more people to participate. Additionally, Nathan is responsible for the stablecoin collective-related work. He has performed exceptionally well and achieved remarkable results.

At the same time, I believe we have always hoped to make this project a large-scale collaboration driven by the community. Especially for stablecoins, we want users not only to be willing to use it but also to genuinely like it. Only by promoting from the grassroots level can stablecoins truly function and demonstrate their value. I believe the decisions we made regarding token distribution and allocation are fundamentally based on this idea, aimed at making the entire ecosystem more aligned with community needs.

Sustainability of Earnings on Plasma

Andy:

Let's talk about some current dynamics on the chain. For example, Aave and Ethena's USDE offer very attractive yields, along with circular operations and the XPL reward mechanism. These have attracted many users. So, what is the best way to earn on Plasma right now? How is the entire ecosystem operating? How do you view the sustainability of the earnings model related to XPL token rewards? How do you hope to transform this earnings model into a mechanism that attracts long-term community participants, rather than just a simple "farm and dump" phenomenon? Can you elaborate on your strategies and vision?

Paul:

Of course, that's a very good question. I think there are indeed many examples showing that some projects have high TVL (Total Value Locked), but due to a lack of real application scenarios, they ultimately fail to make substantial progress. We are very aware of this complexity. For us, we always believe that distribution is key to ensuring network value. As a stablecoin network, you need as many nodes as possible to join to enhance the overall value of the network.

One point that might be overlooked is that before the mainnet launch, we established a significant revenue partnership with Binance. Through this partnership, users can deposit directly from Binance's platform to Aave on Plasma. It's worth noting that Binance has 280 million users, which is a huge breakthrough for us. Therefore, our overall goal is to achieve larger-scale token distribution through such partnerships, allowing the on-chain currency market to be utilized by anyone who sees its value.

Of course, relying solely on the native user base of the crypto space is not a sustainable model. Such user groups are typically short-term and subject to high market volatility. Therefore, our strategy cannot just revolve around these users but needs to expand to a broader audience.

Returning to your question about the sustainability of Plasma DeFi, I think a key point is that we need to drive real organic usage. By "organic usage," I mean users using our platform based on actual needs rather than purely reward mechanisms. In other words, we cannot just rely on incentive mechanisms to attract users; we must ensure that the platform itself is attractive and meets users' real needs. On this point, I believe we have made some progress and will continue to focus on this direction in the future.

Replicating Plasma's Success

Robbie:

Your team indeed has a unique advantage. Generally, blockchain projects launch their tokens after the mainnet goes live and start planning their ecosystems to attract liquidity through tokens. But you achieved these goals before launching your token. This makes me curious about what special qualities you have that other teams cannot replicate?

Paul:

We have the best team.

Robbie:

Do you think other teams will try to replicate your approach, but due to their inability to assemble a team like yours, they may ultimately fail?

Paul:

Yes, I hope so. But if they don't, I might need to have some specific discussions with them. However, at the end of the day, I truly believe we have an outstanding team. I sincerely think that a smart team with long-term goals is our greatest advantage. They not only have the capability but are genuinely committed to creating something valuable, which is the most precious asset of any company.

Stablecoins as a Turning Point in the Industry

Andy:

Regarding how other teams are participating in this field, I spoke with Jeremy Elair last week. He shared Circle's views on Arc and their chain, as well as Broads' USDC distribution strategy. Now there are some other competitors, such as Stripe, Circle, and Tether, all trying to build a global stablecoin transfer network.

When talking about competitors, we usually think of large payment processing companies like Visa. These companies have a market capitalization of over $50 billion and handle trillions of dollars in transactions daily. I discussed this topic with Jeremy, who believes that USDC aims to be ubiquitous like Netflix, appearing on smart TVs, smartphones, and even smart refrigerators.

I feel that Paul's philosophy is similar, and he has executed it very successfully on a global scale. When it comes to Arc and the chain, he views them as a natural evolution of Web 2.0 technology. For example, you can use Google Chrome on a Mac, stream services on Apple TV and iPad, play programs on LG or Samsung TVs, and even use Apple products on a Google Chromebook. This integration of technology stacks is precisely the focus of our discussion. He emphasizes the idea of "expanding the pie" rather than competing for existing market share. Therefore, I would like to ask you a question.

In the competitive landscape of stablecoin chains, especially with Plasma as a leader and market pioneer in this field, what do you see as your advantages? Under the concept of "expanding the pie," what significant contributions do you think Plasma can bring to the industry?

Paul:

I believe stablecoins are at the beginning of a turning point in the industry. The total amount of stablecoins circulating in the market is currently around $260 billion to $270 billion, and we believe this market will eventually reach the trillion-dollar level. Many people predict that the growth of stablecoins will far exceed the past, which fills us with anticipation for the future.

Looking back at our development journey, the initial question we faced was not how to compete with payment giants like Stripe, but whether everything we were doing truly mattered. Why does a stablecoin need a dedicated chain? Why not just use Ethereum directly? Over time, the market's demand for stablecoin chains has gradually emerged, which reassures me as it reflects the real needs of the industry.

Now, we indeed find ourselves in competition with payment giants like Stripe. However, our goals and strategies differ from theirs. For instance, we do not directly compete with Temple. We believe that winning this industry's "massive" battle is key. Currently, no project has achieved a true victory in this field, including Ethereum and Tron. I believe the definition of "massive" will change in the next two to five years. I believe dedicated stablecoin chains will emerge in the future, with stablecoins on these chains totaling hundreds of billions of dollars, and daily trading volumes potentially reaching trillions of dollars. This is the future we are striving to build. Therefore, we do not focus too much on small-scale competition, such as the dynamics of Temple or Codex. While I have great respect for these teams, who are pursuing their own goals, our direction is much grander.

Impact of a Saturated Stablecoin Market

Robbie:

Another notable change is the market's acceptance of stablecoins. There is now a consensus that the circulation of stablecoins will reach the trillion-dollar level. This is not only a result of market development but has also become part of U.S. government financing. Stablecoin companies are being used as a tool for issuing debt, further driving the development of stablecoins. I am curious, when the stablecoin ecosystem reaches a trillion-dollar scale, what kind of impact will it have on the industry?

People like Arthur Hayes believe that the growth of stablecoins will bring a significant leverage effect to DeFi applications. But more specifically, regarding some DeFi applications on Plasma and the changes in market competitive forces you have observed, how do you think the industry landscape will evolve? What are the phased changes from now until achieving a trillion-dollar scale? How do you view this transition process from today to the future?

Paul:

This is a very complex question that involves changes on multiple levels. But I firmly believe that the future you describe is achievable. I think the process of achieving this goal will be quite complex, especially in the U.S., where the strategic importance of stablecoins is increasingly recognized. Scott Bessent has mentioned that stablecoins have become a core strategic tool in global dollar monetary policy because they can attract buyers who have no preference restrictions on debt pricing. While it may sound like a conspiracy theory, it actually reflects the reality. Stablecoins do solve many problems and provide significant development potential for many areas.

Robbie:

The market seems to have accepted this view. So more specifically, how will the further integration of stablecoins with other systems affect the landscape of the blockchain industry?

Paul:

I believe that the boundaries between on-chain and off-chain will become blurred in the future. Over the past few years, the entry of institutions into the crypto space and the definitions of the front and back ends of DeFi have been two hot topics, but they have only recently begun to truly happen. These two are merging in very practical ways. Our current clients have already started using solutions that can connect on-chain and off-chain products. I believe more similar products will emerge in the future, which will support centralized user interfaces through on-chain processes. This combination of on-chain and off-chain will become a key direction for industry development and is a major focus for us at Plasma.

Andy:

I completely agree with your view. This may also be one of the reasons you are focusing on the development of the Plasma One product, right? Because stablecoins have very important application scenarios in cross-border payments, providing services for the unbanked, and helping people access strong dollars when they need them most. These are precisely the goals that cryptocurrencies promised to achieve in 2017, and now crypto technology is regrouping around these use cases.

Paul:

I believe that one of the core values of cryptocurrencies is permissionless money. This is a very important concept. Although achieving this goal has taken longer than many people expected, it is gradually becoming a reality.

Andy:

Now, let's talk about the vision for the Plasma One application and Neo Bank. Looking ahead five years, what headlines do you hope to see about the Plasma One application? What is your vision for this application? How do you plan to execute it?

Paul:

I believe that stablecoins, as core infrastructure, are the perfect technology stack for building consumer-facing products. On one hand, they can serve as a point of distribution; on the other hand, they can significantly enhance the user experience of financial tools. As a long-term user of stablecoins, I live in an environment with a sound banking system and access to good fintech products. But I know that this condition does not apply to most places in the world. Therefore, I believe that products built on stablecoins can provide users with a better experience than traditional banking systems.

This is precisely why we are developing Plasma One, as well as to showcase the potential of stablecoins. We are collaborating with many excellent companies that are also developing on Plasma. We do not reject these collaborations, as they clearly hold great value. Plasma is a great example that demonstrates how stablecoins can serve as a foundation to build truly impressive products.

Plasma's Distribution Strategy

Robbie:

Can you elaborate on the core idea of the distribution strategy? I can roughly understand the concept, but your previous statement has given me a new perspective. Could you further explain the specific meaning of this strategy and how you apply it in practice?

Paul:

Of course. Our goal is to build a stable and efficient ecosystem, and the key to achieving this lies in leveraging network effects. To do this, we need to ensure that Plasma's applications can cover as wide a user base as possible, including from B2B to B2C. Simply put, our goal is to enable end-users to truly access and use the functionalities of Plasma, which is very important. In fact, this is also where Tron has excelled in the industry, as they have strong capabilities in stablecoin distribution and user reach. That is why we place great importance on this aspect. To drive this goal, we need to develop some concrete applications that can truly showcase Plasma's potential, and Plasma One is one of the core products we have built for this purpose.

Andy:

From theory to practice, the user experience on the Plasma chain seems to be more user-friendly than traditional cryptocurrency systems. For example, when considering the user base for the Plasma One application, I think of markets like Turkey, Syria, Brazil, and Argentina. Users in these regions are often the primary target group for stablecoins like USDT. They typically do not want to deal with complex seed phrases or face cumbersome authorization processes. What they need is a free transfer service and a way to easily and securely send money to their families. At the same time, these users also want to protect their privacy and even withdraw funds when necessary. While I know that blockchain is designed differently from traditional payment systems, traditional payment methods do have advantages in certain aspects.

Do you think that user experience is also an important consideration in the design of the Plasma chain? Will user experience particularly focus on these needs when designing the Plasma One application?

Paul:

Absolutely, 100%. I completely agree. This is a great introduction to Plasma One, and I fully support this point.

XPL Token Value Accumulation Plan

Andy:

I noticed that Visa's market capitalization is around $50 billion to $60 billion, and other companies that process trillions of dollars in payments also fall within this range. Many people are paying attention to how the XPL token can accumulate value and whether it can play a positive role in the Plasma network. Currently, the revenue and token buyback model excites many people, but this may only be a short-term phenomenon. However, the crypto ecosystem is continuously evolving, and I believe this is a positive trend.

How do you think XPL can become a sustainable asset? For those who want to compare XPL with Circle or other publicly listed companies, can XPL become the best way to access the stablecoin market? How do you make this vision a reality for XPL holders? What do you want to say to them today?

Paul:

Of course, I can share that. I believe this is a question our team has been deeply contemplating. For the Plasma ecosystem, the XPL token must play a very core role.

We hope to avoid a situation of "decentralized chaos," where many different entities accumulate some value but fail to form a clear system; such a model is ultimately not sustainable. When designing the value accumulation mechanism for XPL, we indeed faced a lot of complexities, which is a topic we spent considerable time researching. In the future, we will elaborate on the details in public forums. While it is difficult to provide a simple and direct answer now, I can assure you that the design of our entire system is closely aligned with the interests of the community. We will continue to advance in this direction while ensuring that the XPL token plays a core role in the ecosystem.

Partnership Between Plasma and Tether

Andy:

The co-founder of Tether mentioned in an interview that his mission is to take startups from 0 to 1. He quoted Peter Thiel's book, believing that Tether is no longer a startup. So, in the growth process from 0 to 100, what stage is Tether currently in? His answer was, "I feel we are still at the 0.25 stage. From here, our potential for growth is limitless. Through innovation, there are many areas we can disrupt and many things we can build. Once people understand the true strategy behind every thoughtful action we take every day, they will realize the real potential of this company." He defined Tether as a "once-in-a-century company." Additionally, Tether is seeking to raise $2 billion at a $500 billion valuation, and the CFTC has also approved the settlement of stablecoins in the U.S. traditional derivatives market.

So, how important is Tether to the future development of Plasma? Perhaps this question is a bit simplistic. Also, does your collaboration with Paolo to promote stablecoin development have significant impacts at the policy level, such as with the White House? What does this mean for Plasma?**

Paul:

First of all, if Tether is currently at the 0.25 stage, then I believe Plasma might still be at the 0.01 stage; we have a lot to do. While it sounds like a distant goal, I see it as a hopeful beginning. The Tether team has built a truly significant company for the times and has achieved remarkable success through long-term strategic decisions. This is also the direction we at Plasma hope to emulate. In the stablecoin space, USDT has performed exceptionally well. While I may be somewhat biased, I genuinely believe this is the case. Therefore, we have always centered our development of Plasma around the USDT ecosystem. While we support a multi-stablecoin world, Tether's market dominance and extensive distribution network are incredibly difficult to replicate. Thus, we have great respect for Tether and thoroughly enjoy our collaboration with them. I hold Paolo and the entire team in high regard.

Robbie:

Considering that the crypto industry is changing every day, the successful launch of Plasma may introduce some people to this project for the first time. What is the most important information you want these new users to know? Where can they go to learn more?

Paul:

Everyone can visit our official website plasma.to to learn more. I want everyone to know that our goal is to become a leader in the stablecoin space. I believe that stablecoins will become one of the largest financial markets globally. Simply put, the growth of the global economy is an opportunity for stablecoins, and we hope to secure a place in this vast market. Our vision is very clear: global commerce will gradually shift to stablecoins, and Plasma will be an important driving force behind this transition.

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