Guest: Paul Faecks, Plasma CEO

Host: Andy; Robbie

Podcast source: The Rollup

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

Air Date: September 28, 2025

Summary of key points

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

• Airdrop and XPL Distribution Strategy

• 280 million Binance users earn on-chain income

• XPL Token Vision

• Plasma One: Neobanking for the Unbanked

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

• Why 'scaling' will look different in five years

• Tether Partnership and USDT Dominance

Summary of highlights

• The most important decision in token allocation and distribution is to enter the market in an open manner so that more people can participate. Investing $1 on the chain may yield a return of $10,000, which is consistent with our consistent operating philosophy.

• Before the mainnet launch, we had already reached an important revenue partnership with Binance, which allowed users to deposit Plasma to Aave directly through the Binance platform.

• Relying solely on the native user base in the crypto field is not a sustainable model. We need to promote real organic usage and cannot rely solely on incentive mechanisms to attract users. Instead, we must ensure that the platform itself is attractive and can meet the real needs of users.

• We have always hoped that this would eventually become a community-driven project. I believe that the decisions made in terms of token allocation and distribution are basically based on this concept, aiming to make the entire ecosystem more closely aligned with the needs of the community.

• Stablecoins are at the beginning of an industry inflection point. Currently, there are approximately $260 billion to $270 billion in stablecoins in circulation, and we believe this market will eventually reach trillions of dollars.

• I believe that in the future there will be dedicated stablecoin chains, the total amount of stablecoins on these chains will reach hundreds of billions of dollars, and the daily transaction volume may reach trillions of dollars.

• Stablecoins have become a core strategic tool of global dollar monetary policy because they attract buyers who have no preference for the price of the debt.

• The entire XPL system is designed to be closely aligned with 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 to stablecoins, and Plasma will become an important driving force for this transformation.

• We built Plasma with the USDT ecosystem in mind. While we support a multi-stablecoin world, Tether’s market dominance and broad distribution network are very difficult to replicate.

Reflections after the release of XPL

Andy:

Paul, tell us about the last few days and how it's been going.

Paul:

It's been a really intense week. We've been busy all week, because launching a blockchain isn't just about opening a network. There are so many dynamics involved, including external variables that are beyond our control. So, it's been a really stressful week. So far, though, everything's going really well, and we're really happy. However, everyone was definitely exhausted last night.

Robbie:

What did you find to be the most difficult part? Does it seem like the hardest part is over now?

Paul:

Not at all. I think the real challenges lie ahead. We just announced the Plasma One product, and while that's obviously just part of the work before launching the chain, I think it's actually where we're really starting to build out our vision. While the chain itself, the DeFi ecosystem, and the exchange components are all incredibly important, there's still a lot of work ahead of us.

Andy:

Now, we'd like to hear about your future vision, such as how you plan to develop your product pipeline and the future direction of the chain. Clearly, Plasma has attracted a lot of activity and attention due to its pre-deposit mechanism. Before we delve into the future, I have a question: Why did you decide to implement a mechanism for pre-depositing USDT to receive an XPL token airdrop ? For example, this design, distributed to users who deposited early, has already sparked excitement online. Some even say that if you invest $1 in the chain, you could potentially get $10,000 in returns.

Of course, not everyone can actually operate at this ratio, but many users do benefit from it. I think you've managed to avoid some of the negative publicity that similar mechanisms can often evoke. How did you achieve this? Why did you choose this approach to reward the Plasma community and the Plasma Collective? What's the rationale behind this design?

Paul:

I think this is very consistent with how we operate. For example, we set very clear and transparent parameters for our public sale, allowing anyone to participate. This is very important to us, as we want to enter the market in an open manner that allows as many people as possible to participate. Furthermore, Nathan is responsible for the stablecoin collective. He has done an excellent job in this area and achieved impressive results.

At the same time, I believe we've always wanted to build this project into a large-scale, community-driven collaboration. Especially for stablecoins, we want users to not only be willing to use them, but also truly enjoy them. Only by promoting them from the grassroots level can stablecoins truly be effective and demonstrate their value. I believe that our decisions regarding token allocation and distribution are fundamentally guided by this philosophy, aiming to better align the entire ecosystem with the needs of the community.

Yield sustainability on Plasma

Andy:

Let's talk about some of the current on-chain dynamics. For example, Aave and Ethena's USDE offer very attractive yields, as well as looping operations and XPL rewards. These have attracted a lot of users. So, what is the best way to earn yield on Plasma right now ? How is the overall ecosystem performing? How do you view the sustainability of the yield model associated with XPL token rewards? How do you hope to transform this yield model into a mechanism that attracts long-term community participants, rather than a simple "farm and dump" phenomenon? Can you elaborate on your strategy and vision?

Paul:

This is a very good question. I believe there are indeed many examples of projects that, despite having high TVL (total value locked), ultimately failed to achieve substantial progress due to a lack of real-world use cases. We are very aware of this complexity. We have always believed that distribution is key to ensuring network value. As a stablecoin network, you need as many nodes as possible to increase the value of the entire network.

One point that might be overlooked is that before the mainnet launch, we had already reached a significant revenue partnership with Binance. Through this partnership, users can deposit Plasma tokens directly into Aave through Binance's platform. Considering Binance has 280 million users, this is a huge breakthrough for us. Therefore, our overall goal is to achieve a larger token distribution through this partnership, making the on-chain money market accessible to anyone who sees its value.

Of course, relying solely on crypto's native user base isn't a sustainable model. Such user groups are often short-lived and subject to significant market volatility. Therefore, our strategy can't simply revolve around these users; we need to expand to a broader audience.

Regarding your question about the sustainability of Plasma DeFi, I believe a key point is that we need to drive genuine organic usage. By "organic usage," I mean that users are using our platform based on actual needs, not simply due to incentives. In other words, we can't rely solely on incentives to attract users; we must ensure that the platform itself is attractive and meets real user needs. I believe we've made some progress in this regard, and we will continue to focus on this direction.

Replicating Plasma’s success

Robbie:

Your team does have a unique advantage. Typically, blockchain projects wait until their mainnet launch to launch their tokens, begin planning their ecosystems, and attract liquidity through tokens. However, you've already achieved these goals before the token launch. This makes me curious: what's unique about you that other teams don't possess?

Paul:

We have the best team.

Robbie:

Do you think other teams will try to copy what you've done, but ultimately fail because they can't build a team like yours?

Paul:

Yes, I hope so. But if they don't, I might need to have some specific conversations with them. Ultimately, though, I truly believe we have an exceptional team. I truly believe that this smart, long-term team is our greatest strength. They're not only capable, but also truly committed to creating something valuable, which is any company's most valuable asset.

Stablecoins are a turning point for the industry

Andy:

I spoke with Jeremy Elair last week about how other teams are participating in this space. He shared Circle's perspective on Arc and their chain, as well as Broad's USDC distribution strategy. There are other competitors, such as Stripe, Circle, and Tether, all trying to build a global stablecoin transfer network.

When we think of competitors, we often think of large payment processors like Visa. These companies have market capitalizations exceeding $50 billion and process trillions of transactions daily. I spoke with Jeremy about this topic, and he believes USDC aims to be as ubiquitous as Netflix, with USDC available on smart TVs, smartphones, and even refrigerators.

I think Paul has a similar philosophy, and he's successfully executed it globally. When discussing Arc and Chain, he sees them as the natural evolution of Web 2.0 technologies. For example, you can use Google Chrome on an Apple computer, stream content on an Apple TV or iPad, stream shows on an LG or Samsung TV, and even use Apple products on a Google Chromebook. This convergence of technology stacks is exactly what we're discussing. He's very focused on the concept of "expanding the pie" rather than fighting for existing market share. So, I'd like to ask you a question.

In the competitive landscape of stablecoin chains, especially with Plasma as a leader and first-to-market project, what do you consider to be its strengths? Under the concept of "expanding the pie," what significant contributions do you believe Plasma can bring to the industry?

Paul:

I believe stablecoins are at the beginning of a turning point for the industry. Currently, there are approximately $260 billion to $270 billion in stablecoins in circulation, and we believe this market will eventually reach trillions. Many predict that stablecoin growth will far exceed past growth, which gives us great anticipation for the future.

Looking back on our journey, the initial question we faced wasn't how to compete with payment giants like Stripe, but whether what we were doing truly made sense. Why did a stablecoin need a dedicated blockchain? Why couldn't we just use Ethereum? Over time, the market demand for a stablecoin blockchain gradually became apparent, which reassured me because it reflected a real need in the industry.

We do compete with payment giants like Stripe, but our goals and strategies differ. For example, we don't compete directly with Temple. We believe winning the battle for "scale" in the industry is key. No project has truly triumphed in this area yet, including Ethereum and Tron. I believe the definition of "scale" will change over the next two to five years. I believe dedicated stablecoin chains will emerge, with a total stablecoin volume reaching hundreds of billions of dollars and potentially trillions of dollars in daily transactions. This is the future we are striving to build. Therefore, we don't pay much attention to smaller-scale competition, such as what's happening with Temple or Codex. While I have great respect for these teams, and they are pursuing their own goals, ours is a much more ambitious goal.

The impact of a saturated stablecoin market

Robbie:

Another notable change is the market's acceptance of stablecoins. There's now a consensus that the circulating supply of stablecoins will reach trillions. This is not only a result of market development, but also a component of US government financing. Stablecoin companies are using it as a vehicle for issuing debt, further fueling the growth of stablecoins. I'm curious about the impact this will have on the industry once the stablecoin ecosystem reaches trillions of dollars.

People like Arthur Hayes believe that the growth of stablecoins will provide significant leverage for DeFi applications. But more specifically, considering some DeFi applications built on Plasma and the shifts in market competitive forces you've observed, how do you envision the industry landscape evolving? What are the milestones between now and achieving trillion-dollar scale? How do you envision this transition from today to the future?

Paul:

This is a very complex issue, involving multiple layers of change. But I firmly believe the future you describe is achievable. I believe the path to achieving this goal will be complex, especially in the United States, where the strategic importance of stablecoins is increasingly recognized. Scott Bessent has mentioned that stablecoins have become a core strategic tool for global US dollar monetary policy because they attract buyers with unconstrained preferences for debt prices. While this may sound like a conspiracy theory, it actually reflects reality. Stablecoins do solve many problems and offer tremendous potential for development in many areas.

Robbie:

The market seems to have accepted this view. More specifically, how will stablecoins affect the blockchain industry landscape as they are further integrated with other systems?

Paul:

I believe the lines between on-chain and off-chain will blur in the future . While institutional entry into crypto and the definition of DeFi's front-end and back-end have been hot topics for the past few years, only recently have they truly begun to converge. These two are converging in very real ways. Our current clients are already using solutions that bridge on-chain and off-chain products. I believe more similar products will emerge in the future, supporting centralized user interfaces with on-chain processes. This integration of on-chain and off-chain will be a key direction for the industry and a key focus for us at Plasma.

Andy:

I completely agree with you. This is probably one of the reasons you're focusing on Plasma One product development, right? Because stablecoins have incredibly important use cases for cross-border payments, serving the unbanked, and providing access to strong US dollars when people need them most. These are exactly the things that cryptocurrency promised to achieve in 2017, and now crypto 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. While it has taken longer than many expected, it is now becoming a reality.

Andy:

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

Paul:

I believe stablecoins, as core infrastructure, are the perfect technology stack for building concrete consumer-facing products. On one hand, they can serve as an entry point for distribution; on the other, they can significantly enhance the user experience of financial instruments. As a long-time stablecoin user, I live in an environment with a robust banking system and access to excellent fintech products. However, I understand that this situation does not apply to most other parts of the world. Therefore, I believe that products built on stablecoins can provide users with a superior experience compared to the traditional banking system.

This is exactly why we developed Plasma One, and it's also to demonstrate the potential of stablecoins. We're collaborating with many great companies who are also building on Plasma. We're not against these collaborations, as they clearly have tremendous value. Plasma is a great example of how stablecoins can serve as a foundation for building truly amazing products.

Plasma's distribution strategy

Robbie:

Could you elaborate on the core idea behind your distribution strategy? I generally understand the concept, but your explanation has given me a new perspective. Could you further explain the specifics of this strategy and how you apply it in practice?

Paul:

Absolutely. Our goal is to build a stable and efficient ecosystem, and the key to this lies in leveraging network effects. To achieve this, we need to ensure that Plasma applications reach the broadest possible user base, from B2B to B2C. Simply put, our goal is to enable end users to truly engage with and utilize Plasma's capabilities. This is crucial. In fact, this is where Tron excels in the industry, with its strong capabilities in stablecoin distribution and user engagement. This is why we prioritize this area. To advance this goal, we need to develop concrete applications that truly demonstrate Plasma's potential, and Plasma One is one of our core products for this purpose.

Andy:

From theory to practice, the Plasma chain's user experience appears to be more user-friendly than traditional cryptocurrency systems. For example, when considering the user base for the Plasma One application, markets like Turkey, Syria, Brazil, and Argentina come to mind. Users in these regions are often the primary target group for stablecoins like USDT. They generally don't want to deal with complex seed phrases or cumbersome authorization processes. They want free transfer services and a way to easily and securely send funds to their families. At the same time, these users also want to maintain their privacy and even be able to withdraw their funds if necessary. While I understand that blockchain technology differs from traditional payment systems by design, traditional payment methods do offer some advantages.

Do you think user experience is also an important consideration in Plasma chain design? When designing Plasma One applications, will user experience pay special attention to these needs?

Paul:

100% yes, absolutely agree. This is a fantastic pitch for Plasma One and I fully support it.

XPL Token Value Accumulation Plan

Andy:

I note that Visa's market capitalization is roughly between $50 billion and $60 billion, and other companies processing trillions of dollars in payments are also in this range. Many are watching to see how the XPL token accumulates value and whether it can play a positive role in the Plasma network. Currently, there's a lot of excitement surrounding revenue and token buybacks, but this is likely a short-term phenomenon. However, the crypto ecosystem is constantly evolving, and I see this as a positive trend.

How do you envision XPL becoming a sustainable asset? For those looking to compare XPL to Circle or other publicly traded companies, is XPL the best way to gain exposure to the stablecoin market? How can you make this vision a reality for XPL holders? What would you like to say to them today?

Paul:

Of course, we can share it. I think this is something our team has been thinking deeply about. The XPL token must play a very core role in the Plasma ecosystem.

We want to avoid a fragmented landscape where many different entities accrue value independently without a clear system in place, a model that is ultimately unsustainable. Designing XPL's value accumulation mechanism presented significant complexities, a topic we've spent considerable time researching. We'll elaborate further publicly in the future. While it's difficult to provide a straightforward answer right now, I can confirm that our entire system is designed with the community's interests firmly in mind. We will continue to advance in this direction while ensuring the XPL token plays a core role in the ecosystem.

Plasma and Tether Partnership

Andy:

Tether's co-founder once mentioned in an interview that his mission is to take startups from 0 to 1. Citing Peter Thiel's book, he argued that Tether is no longer a startup. So, in its journey from 0 to 100, where is Tether now? His response: "I feel like we're still at the 0.25 stage. From here, our potential growth is limitless. Through innovation, we still have many areas to disrupt and much to build. Once people understand the true strategy behind every thoughtful action we take every day, they will realize the true potential of this company." He defined Tether as a "once-in-a-century company." Furthermore, Tether is seeking to raise $2 billion at a $500 billion valuation, and the CFTC has approved the settlement of stablecoins in traditional US derivatives markets.

So, how important is Tether to the future of Plasma ? Perhaps that's a bit of a simplistic question. Also, does your partnership with Paolo to advance stablecoins have a significant impact on policymakers, like the White House? What does that mean for Plasma?

Paul:

First, if Tether is currently at 0.25, then I think Plasma is probably still at 0.01, and we still have a lot of work to do. While it sounds like a long shot, I think it's a promising start. The Tether team has built a truly groundbreaking company and achieved remarkable success through long-term strategic decisions. This is the direction we at Plasma hope to emulate. USDT has been incredibly successful in the stablecoin space. While I may be biased, I believe this is true. Therefore, we've always built Plasma with the USDT ecosystem in mind. While we support a multi-stablecoin world, Tether's market dominance and extensive distribution network are incredibly difficult to replicate. For this reason, we have great respect for Tether and have thoroughly enjoyed working with them. I have the utmost respect for Paolo and the entire team.

Robbie:

Considering how the crypto industry is changing daily, the successful launch of Plasma may expose some people to the project for the first time. What's the most important piece of information you want these new users to know, and where can they go to learn more?

Paul:

You can visit our official website at plasma.to to learn more. I want everyone to know that our goal is to be a leader in the stablecoin space. I believe stablecoins will become one of the largest global financial markets . Simply put, global economic growth is an opportunity for stablecoins, and we want to capture a share of this enormous market. Our vision is clear: global commerce will gradually shift to stablecoins, and Plasma will be a key driver of this transformation.