Original Title: How Plasma Plans To Win The Trillion Dollar Stablecoin Battle - CEO Paul Faecks
Original Source: The Rollup
Compilation, Editing: Deep Tide TechFlow

Guest: Paul Faecks, Plasma CEO

Hosts: Andy; Robbie

Air Date: September 28, 2025

Key Points Summary

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

· Airdrop and XPL distribution strategy

· 280 Million Binance Users Receiving On-Chain Yield

· XPL Token Vision

· Plasma One: Introducing New Banking Services for the Unbanked

· Competing with Visa at a Market Cap of Over $500 Billion

· Why "scaling" will be different five years from now

· Tether Partnership and the Dominance of USDT

Highlight Reel

· When making decisions about token allocation and distribution, the most important thing is to enter the market in an open way, allowing more people to participate. Investing $1 on-chain could potentially yield $10,000, which aligns with our consistent operational philosophy.

· Before the mainnet launch, we had already secured a significant yield partnership with Binance. Through this partnership, users can directly deposit on Plasma to Aave via Binance's platform.

· Relying solely on the native user base of the crypto space is not a sustainable model. It is necessary to drive true organic usage, not just rely on incentive mechanisms to attract users, but to ensure that the platform itself is attractive and able to meet real user needs.

· We have always hoped that this would eventually become a community-driven project. I believe that the decisions made regarding Token distribution and deployment are fundamentally based on this idea, aiming to make the entire ecosystem more aligned with community needs.

· Stablecoins are at the beginning of an industry turning point. Currently, the total supply of stablecoins in circulation in the market is around 260 to 270 billion US dollars, and we believe that this market will eventually reach the trillion-dollar level.

· I believe that dedicated stablecoin chains will emerge in the future, with the total supply of stablecoins on these chains reaching hundreds of billions of dollars, and daily transaction volumes potentially reaching tens of trillions of dollars.

· Stablecoins have become a core strategic tool in global US dollar monetary policy, as they can attract buyers who have no preference restrictions on debt prices.

· The design of the entire XPL system is closely aligned with the interests of the community while ensuring that the XPL token plays a core role in the ecosystem.

· The vision of Plasma is very clear: global commerce will gradually shift to stablecoins, and Plasma will be a key driving force behind this transformation.

· We have always centered the development of Plasma around the USDT ecosystem. While we support a multi-stablecoin world, Tether's market dominance and widespread distribution network are very difficult to replicate.

Reflections After XPL Launch

Andy: Paul, let's talk about the situation over the past few days. How do you feel?

Paul: It's been a very intense time. We've been busy all week because launching a blockchain is not just about opening a network. There are many dynamic factors involved, including some external variables that we don't fully control. So, it has been a hugely stressful week. However, so far, everything has been going smoothly, and we are very happy. But yes, everyone was indeed exhausted last night.

Robbie: So, what do you think was the most challenging part? Do you think the toughest phase is over now?

Paul: Not at all. I believe the real challenge lies ahead. We've just announced the Plasma One product, and that was clearly only part of the work before the chain launch. I think this is actually the starting point for us to truly build our vision. While the chain itself, the DeFi ecosystem, and exchange components are all very important, there is still a lot of work ahead of us to complete.

Andy:

Now, we would like to understand your future vision, such as how you plan the product line's development and your outlook on the future direction of the chain. Obviously, due to the design of the pre-staking mechanism, Plasma has already attracted a lot of activity and attention. Before delving into the future, I have a question: Why did you decide to adopt the mechanism of pre-staking USDT to receive the XPL token airdrop? For example, allocating to those users who made early deposits, this design has sparked a trend online. Some have even said that if you invest 1 dollar on-chain, you could get a return of 10,000 dollars.

Of course, not everyone can operate at this ratio in reality, but indeed many users have benefited from it. I think you have successfully avoided some of the negative publicity that such a mechanism might typically generate. 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 consistent approach to operation. For example, we set very clear and transparent parameters during the public sale, where anyone could participate. This was very important for us because we wanted to enter the market in an open manner, allowing more people to participate. In addition, Nathan is in charge of the stablecoin collective-related work. He has performed exceptionally well in this area, achieving remarkable results.

At the same time, I think we have always wanted to build this project into a community-driven large-scale collaboration. Especially for stablecoins, we want users not only to be willing to use it but also to truly love it. Only by promoting from grassroots users can stablecoins truly be effective and demonstrate their value. I think the decisions we have made regarding token allocation and distribution are mostly based on this idea, aiming to make the entire ecosystem more aligned with community needs.

Revenue Sustainability on Plasma

Andy: Let's talk about some of the current dynamics on the chain. For example, Aave and Ethena's USDE offer very attractive returns, as well as the recycling operations and the XPL reward mechanism. These have attracted many users. So, what is currently the best way to earn revenue on Plasma? How is the overall ecosystem operating? How do you view the sustainability of the revenue model associated with the XPL token reward? How do you hope to transform this revenue model into a mechanism that can attract long-term community participants, rather than just the "farming and dumping" phenomenon? Could you elaborate on your strategy and vision?

Paul: Of course, that's a very good question. I believe there are indeed many examples that show some projects with a high Total Value Locked (TVL) but due to a lack of real-world use cases, they ultimately failed 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 to join as possible to increase the overall network value.

One point that may be overlooked is that prior to the mainnet launch, we had already secured a significant partnership with Binance. Through this partnership, users can directly deposit on Aave on Plasma via Binance's platform. It's important to note that Binance has 280 million users, which is a huge breakthrough for us. Therefore, our overall goal is to achieve a larger-scale token distribution through such partnerships, enabling on-chain money markets to be used by anyone who sees their value.

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

Returning to your question about Plasma DeFi sustainability, I believe a key point is that we need to drive genuine organic usage. By "organic usage," we mean users utilizing our platform based on actual needs rather than just reward mechanisms. In other words, we cannot rely solely on incentive mechanisms to attract users but must ensure that the platform itself is attractive and can meet users' real needs. On this front, 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. Typically, blockchain projects launch their own tokens and start planning their ecosystem after the mainnet launch to attract liquidity through tokens. But you have already achieved these goals before the token launch. This makes me curious, what is your team's special advantage that other teams cannot possess?

Paul: We have the most exceptional team.

Robbie: Do you think other teams will try to replicate your approach, but due to being unable to assemble a team like yours, they may ultimately not succeed?

Paul: Yes, I hope so. But if they do not, I may need to have some specific conversations with them. However, at the end of the day, I truly believe we have an outstanding team. I genuinely believe that such a smart and long-term goal-oriented team is our greatest asset. They not only have the capability but are truly committed to creating valuable things, which is the most precious asset of any company.

Stablecoins: A Turning Point for the Industry

Andy: Regarding how other teams can get involved in this field, I chatted with Jeremy Elair last week. He shared Circle's perspective on Arc and their chain, as well as Broads' USDC distribution strategy. There are now some other competitors as well, such as Stripe, Circle, and Tether, who are all trying to build a global stablecoin transfer network.

When it comes to competitors, we often think of large payment processing companies like Visa. These companies have market caps exceeding $500 billion and process transactions in the trillions every day. I discussed this with Jeremy, and he believes that USDC's goal is to be as ubiquitous as Netflix, visible on smart TVs, smartphones, or even smart refrigerators.

I think Paul's concept is similar, and he has already executed it very successfully on a global scale. When talking about Arc and the chain, he sees them as a natural evolution of Web 2.0 technology. For example, you can use Google Chrome on an Apple computer, stream services on an Apple TV or iPad, watch shows on LG or Samsung TVs, or even use Apple products on a Google Chromebook. Integrating this tech stack is the focus of our discussion. He emphasizes the concept of "expanding the cake" rather than fighting for existing market share. Therefore, I would like to ask you a question.

In the competitive landscape of the stablecoin chain, especially with Plasma as the leader in this field and the first-mover project in the market, what do you see as your advantage? Under the concept of "expanding the cake," what significant contributions do you think Plasma can bring to the industry?

Paul: I believe stablecoins are at the beginning of an industry turning point. Currently, the total circulating supply of stablecoins in the market is around 260 to 270 billion US dollars, 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 also makes us excited about the future.

Looking back at our development journey, initially, the problem we faced was not how to compete with payment giants like Stripe, but whether everything we were doing really made sense. Why does a stablecoin need a dedicated chain? Why can't it directly use Ethereum? Over time, the market's demand for a stablecoin chain gradually emerged, which made me happy because it reflected the industry's real needs.

Now, we are indeed competing with payment giants like Stripe. However, our goals and strategies differ from theirs. For example, we do not directly compete with Temple. We believe that winning the "scale" battle in this industry is key. Currently, no project has truly succeeded in this field, including Ethereum and Tron. I believe the definition of "scale" will change in the next two to five years. I believe there will be dedicated stablecoin chains in the future, with the total stablecoin supply on these chains reaching hundreds of billion dollars, and daily transaction volumes possibly reaching trillions of dollars. This is the future we are striving to build. Therefore, we will not focus too much on some small-scale competitions, such as the dynamics of Temple or Codex. Although I have great respect for these teams, and they are also pursuing their own goals, our direction is more grand.

Impact of a Saturated Stablecoin Market

Robbie: Another notable change is the market's increasing acceptance of stablecoins. There is now a consensus that the circulating supply of stablecoins will reach the trillion-dollar level. This is not only the result of market development but has also become part of the US government's financing. Stablecoin companies are being used as a tool for issuing debt, further driving stablecoin development. I am curious, what impact do you think the industry will have when the stablecoin ecosystem reaches the trillion-dollar level?

People like Arthur Hayes believe that stablecoin growth will bring significant leverage to DeFi applications. But more specifically, concerning some DeFi applications on Plasma and the changing market competitiveness you observe, how do you think the industry landscape will evolve? What are the phased changes from now to achieving a trillion-dollar scale? How do you view this transformation process from today to the future?

Paul: This is a very complex issue involving changes across multiple levels. However, I firmly believe that the future you described is achievable. I think the process of achieving this goal will be quite complex, especially in the United States, where the strategic importance of stablecoins is increasingly being emphasized. 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. Although it may sound like a conspiracy theory, in reality, this reflects the truth. Stablecoins indeed address many issues and provide tremendous potential for development in many areas.

Robbie: The market seems to have already accepted this view. So, more specifically, as stablecoins further integrate with other systems, how will it impact the landscape of the blockchain industry?

Paul: I believe the boundaries between on-chain and off-chain will become increasingly blurred in the future. Over the past few years, institutional involvement in the crypto space and the front-end and back-end of DeFi have been two hot topics, but it is only recently that they have truly started to merge in a very practical way. Our current clients have already started using solutions that can connect on-chain and off-chain products. I believe there will be more similar products in the future that will support centralized user interfaces through on-chain processes. This combination of on-chain and off-chain will be a key direction for industry development and is also a focus of ours on Plasma.

Andy: I completely agree with your view. This may also be one of the reasons you are focusing on developing the Plasma One product, right? Because stablecoins have very important use cases in cross-border payments, serving the unbanked, and helping people access the strong dollar when most needed. These were the goals that cryptocurrency promised to achieve in 2017, and now crypto technology is regrouping around these use cases.

Paul: I believe one of the core values of cryptocurrency is permissionless money. This is a very important concept. Although the realization of this goal has taken longer than many people expected, it is now gradually becoming a reality.

Andy: So, let's talk about the vision for the Plasma One application and Neo Bank. Looking ahead five years, what headline 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 stablecoins, as core infrastructure, form the perfect technology stack to build consumer-facing tangible products. On one hand, it can serve as a distribution entry point; on the other hand, it can significantly enhance the user experience of financial tools. As a long-time user of stablecoins, I live in an environment with a sound banking system and have access to great fintech products. However, I realize that this condition does not apply to most places in the world. Therefore, I think products built on stablecoins can offer users a better experience than the traditional banking system.

This is precisely why we developed Plasma One, also to showcase the potential of stablecoins. We collaborate with many excellent companies that are also developing on Plasma. We do not exclude these collaborations as they obviously hold great value. Plasma is a great example that proves stablecoins can serve as a foundation to build truly amazing products.

Plasma Distribution Strategy

Robbie: Could you elaborate on the core idea behind the distribution strategy? I could grasp the concept vaguely, but your recent articulation gave me a new perspective. Could you further explain the specific meaning of this strategy and how you apply it in practice?

Paul: Certainly. Our goal is to build a stable and efficient ecosystem, with the key to all this lying in leveraging network effects. To achieve this, we need to ensure that Plasma's applications can reach as broad a user base as possible, including from B2B to B2C. Simply put, our goal is to enable end-users to truly experience and use Plasma's functionality, which is crucial. In fact, this is also where Tron excels in the industry; they have strong capabilities in stablecoin distribution and user outreach. Therefore, we value this aspect greatly. To drive this goal, we need to develop some specific applications that can truly showcase the potential of Plasma, and Plasma One is one of the core products we have built for this purpose.

Andy: From theory to practice, the user experience of the Plasma chain seems more user-friendly than traditional cryptocurrency systems. For example, when considering the user base of the Plasma One app, I would think of markets like Turkey, Syria, Brazil, and Argentina. Users in these regions are often the primary target audience of stablecoins like USDT. They usually do not want to deal with complex seed phrases or undergo cumbersome authorization processes. What they need is a free transfer service and a way to easily and securely send funds to their families. At the same time, these users also want to protect their privacy and, if necessary, withdraw their funds. Although I understand that blockchain is different in design from traditional payment systems, traditional payment methods do have certain advantages in some aspects.

Do you believe that user experience is also a key consideration in Plasma chain design? When designing applications for Plasma One, will user experience be a specific focus of these requirements?

Paul: Absolutely, I totally agree. This is a fantastic endorsement of Plasma One, and I fully support this.

XPL Token Value Accrual Plan

Andy: I noticed that Visa's market cap is approximately between 500 billion and 600 billion dollars, and the market cap of other companies processing trillions of dollars in payments also falls within this range. Many people are interested in how the XPL token can accrue value and whether it can play a positive role in the Plasma network. Currently, the revenue and token buyback model has excited many, but this may only be a short-term phenomenon. However, the crypto ecosystem is constantly evolving, and I see this as a positive trend.

How do you think XPL can become a sustainable asset? For those looking to compare XPL with Circle or other publicly listed companies, can XPL be the best way to tap into the stablecoin market? How do you make this vision a reality for XPL holders? Is there anything you'd like to say to them today?

Paul: I'm happy to share. I think this is a question our team has been consistently pondering. For the Plasma ecosystem, the XPL token must take on a very core function.

We hope to avoid the kind of "dispersed chaos" scenario where many different entities each accumulate some value on their own, but without forming a clear system, a pattern that is not sustainable in the long run. When designing the value accrual mechanism for XPL, we did indeed face quite a bit of complexity, which is a topic we have spent a lot of time researching. In the future, we will further elaborate on the details in a public forum. While it may be difficult to provide a simple direct answer right now, I can say for certain that our entire system design is closely tied to the community's interests. We will continue to move in this direction, ensuring that the XPL token plays a core role in the ecosystem.

Partnership between Plasma and Tether

Andy: The co-founder of Tether once mentioned in an interview that his mission is to take a startup from 0 to 1. He referenced Peter Thiel's book, believing that Tether is no longer a startup now. So, in the growth process from 0 to 100, at what stage is Tether currently? His response was: "I think we are still at the 0.25 stage. From here, our potential growth is infinite. Through innovation, we have many areas to disrupt, and there's much to build. Once people understand the true strategic thinking behind every deliberate action we take each day, they will realize the true potential of this company." He defined Tether as a "once-in-a-century company." Additionally, Tether is seeking a $500 billion valuation to raise $20 billion, and the CFTC has approved stablecoins for settlement in the U.S. traditional derivatives market.

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

Paul: First, if Tether is currently at phase 0.25, then I think Plasma might still be at phase 0.01; we have a lot of work to do. Although the goal may seem far off, I believe this is a hopeful start. Tether's team has already built a truly groundbreaking company and has achieved significant milestones through long-term strategic decisions. This is also the direction that we at Plasma hope to emulate. In the stablecoin space, USDT has performed very successfully. While I may be biased, I do believe this is a fact. Therefore, as we build Plasma, we always revolve around the USDT ecosystem. While we advocate for a multi-stablecoin world, Tether's market dominance and extensive distribution network are very difficult to replicate. Therefore, we have great respect for Tether and greatly enjoy our collaboration with them. I have the utmost respect for Paolo and the entire team.

Robbie: Considering the ever-changing nature of the crypto industry, the successful launch of Plasma may introduce this project to some people for the first time. For these new users, what is the most important information you hope they know? Where can they go to learn more?

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

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