Stablecoin Infrastructure Startup Mo Secures $40 Million in Series B Funding Amid Sector Boom

Venture Capital Giants Back “Layer Zero of Money” Vision as Stablecoin Market Accelerates

In a significant development highlighting the growing investor confidence in cryptocurrency infrastructure, stablecoin startup Mo has successfully raised $40 million in Series B funding, according to a report by Fortune on Thursday. This substantial capital injection comes at a time when venture capital firms are increasingly directing resources toward stablecoin-related projects, recognizing their potential to bridge traditional finance with blockchain technology.

The latest funding round was spearheaded by cryptocurrency investment heavyweights Polychain and Ribbit Capital, with additional participation from the Endeavor Catalyst fund. Mo’s existing investors, including Pantera and Bain Capital Crypto, also reinforced their commitment by contributing to this round. This latest investment brings Mo’s total raised capital to nearly $100 million, although the company has opted not to disclose its current valuation, maintaining some financial privacy as it continues its expansion phase.

“We’re building the layer zero of money,” explained Luca Prosperi, Mo’s co-founder and CEO, articulating the company’s ambitious vision. Unlike many projects in the cryptocurrency space that focus on creating new digital assets, Mo is taking a more foundational approach by developing infrastructure that benefits the entire stablecoin ecosystem. The startup is constructing a comprehensive network designed to empower stablecoin issuers, allowing them to deploy tokens without the need to develop their own complex software systems for cross-chain transfers or token exchanges. This infrastructure-focused strategy positions Mo as a potential cornerstone in the rapidly evolving stablecoin landscape, providing essential tools and services that could accelerate adoption across various financial use cases.

Regulatory Clarity Fuels Stablecoin Market Expansion in 2025

The stablecoin sector has experienced remarkable growth throughout 2025, largely driven by increased regulatory clarity in the United States. The passage of the GENIUS Act last month represented a watershed moment for the industry, establishing clear guidelines and compliance frameworks that have encouraged both established financial institutions and innovative startups to enter the space with greater confidence. Stablecoins, which are cryptocurrencies pegged to traditional financial assets such as the US dollar, have become increasingly attractive to investors and users seeking the benefits of blockchain technology without the volatility typically associated with cryptocurrencies like Bitcoin and Ethereum.

This improved regulatory environment has catalyzed extraordinary market expansion, with the total market capitalization of stablecoins surpassing $289 billion this month—more than doubling in size since the beginning of 2025. This growth reflects both increased institutional adoption and broader consumer acceptance of stablecoins as reliable instruments for payments, remittances, and financial applications. Industry experts suggest that stablecoins are increasingly being viewed as a crucial component of the future financial infrastructure, potentially transforming how money moves globally by combining the stability of traditional currencies with the efficiency and transparency of blockchain technology.

The surge in stablecoin popularity has naturally attracted significant venture capital interest, with firms eager to identify and back the projects that will define this emerging financial paradigm. Mo’s recent $40 million funding round stands as one of the largest in the sector, but it represents just one example of the substantial capital flows entering the stablecoin ecosystem. Other notable investments have included Stable, a Tether-focused blockchain project that recently secured $28 million to develop stablecoin payment solutions, underscoring the diverse approaches being funded within the broader stablecoin infrastructure space.

Strategic Positioning in a Competitive Landscape

Mo’s approach differentiates it from many competitors by focusing on infrastructure rather than issuing its own stablecoin. By creating a foundation that supports multiple stablecoin issuers, the company is strategically positioning itself as an essential service provider in a multi-token future. This platform-agnostic strategy could prove particularly valuable as the stablecoin ecosystem continues to diversify, with various tokens potentially serving different geographic regions, regulatory environments, or use cases.

The startup’s emphasis on cross-chain operability also addresses one of the most significant technical challenges in the current blockchain landscape. With digital assets spread across numerous blockchain networks, the ability to seamlessly transfer value between these systems represents a crucial capability for widespread adoption. By developing solutions that enable stablecoin issuers to deploy tokens across multiple blockchains without building custom infrastructure, Mo is potentially removing a major friction point for both issuers and users.

“What we’re seeing is a fundamental shift in how financial infrastructure is being conceived,” explained a blockchain industry analyst who requested anonymity. “Companies like Mo aren’t just creating new financial products; they’re building the rails that will allow digital money to flow more efficiently across the entire global economy. The substantial investment they’ve attracted speaks to the recognition that infrastructure plays a critical role in the next phase of financial innovation.”

The company has not responded to requests for additional comment regarding specific deployment timelines or partnership announcements, maintaining a strategic focus on development rather than publicity as it utilizes its newly secured funding to advance its technical roadmap.

The Broader Implications for Digital Finance

The rapid growth of stablecoin infrastructure companies like Mo signals a maturing cryptocurrency ecosystem that is increasingly focused on practical applications rather than speculative investments. As stablecoins continue to gain traction as instruments for cross-border payments, remittances, and everyday transactions, the underlying infrastructure supporting these tokens becomes increasingly critical to the functioning of the broader digital economy.

Financial inclusion represents another significant potential benefit of robust stablecoin infrastructure. By providing more efficient, lower-cost methods for transferring value, companies like Mo could help extend financial services to the estimated 1.4 billion adults worldwide who remain unbanked. In regions with limited banking infrastructure but growing smartphone penetration, stablecoin-based payment systems could offer a technological leap that bypasses traditional banking development stages.

The intersection of traditional finance and blockchain technology also creates opportunities for innovation in areas like programmable money and automated financial services. Smart contract functionality, when combined with the stability of asset-backed tokens, enables complex financial arrangements to be executed automatically and trustlessly. As infrastructure providers like Mo continue to develop more sophisticated tools for stablecoin deployment and management, these advanced applications become increasingly viable for mainstream adoption.

With nearly $100 million in total funding and the backing of some of the most respected investors in the cryptocurrency space, Mo appears well-positioned to play a significant role in shaping how stablecoins evolve from promising technology to essential financial infrastructure. As regulatory frameworks continue to develop and institutional adoption accelerates, the company’s vision of creating “the layer zero of money” may prove to be a prescient description of the foundation upon which the next generation of digital finance will be built.