EtherFi Allocates $500 Million to Plasma in Partnership Deal

Plasma partners with EtherFi, allocating $500M to boost stablecoin strategies.

The infrastructure stablecoin project Plasma has announced a partnership with the staking protocol EtherFi, describing it as the fastest-growing neobank based on stablecoins.

Stablecoins give everyone, everywhere permissionless access to the financial service of saving money safely and reliably.

Today, we are excited to announce our partnership with the fastest-growing stablecoin-based neobank, @Ether_fi. pic.twitter.com/0zDJOLlBTN

— Plasma (@PlasmaFDN) August 29, 2025

EtherFi will transfer over $500 million from its Ethereum staking vault to the Plasma platform, providing liquidity for yield strategies using stablecoins.

The protocol will fully integrate its products into the partner’s DeFi ecosystem before the mainnet beta launch, offering users additional collateral options for lending and borrowing.

According to DeFi Llama, the total value locked in EtherFi assets is approximately $11.5 billion. The protocol ranks sixth in the decentralized finance sector.    

Plasma is an EVM-compatible Bitcoin sidechain designed for free USDT transactions. The project secured $3.5 million in a funding round led by Bitfinex and $20 million in a Series A round involving Peter Thiel’s Founders Fund.

In June, Plasma increased its stablecoin deposit limit to $1 billion, raising the funds within 30 minutes.

In July, the project raised $373 million through a public sale of XPL tokens.