Cap, a yield-bearing stablecoin protocol, raises $11M from Franklin Templeton and Triton Capital to launch its stablecoin engine

Cap, a yield-bearing stablecoin protocol, shared Monday that it has raised $11 million in funding from big-name financial institutions including Franklin Templeton and Triton Capital.

Cap, a yield-bearing stablecoin protocol, has raised $11 million in funding from financial institutions including Franklin Templeton and Triton Capital, the firm shared Monday.

The total funding — which concludes a recent $8 million seed round — will be used to develop Cap’s stablecoin engine, which is expected to launch in the second half of this year.

Cap previously raised $3 million in a pre-seed round.

Cap’s stablecoin protocol is designed to enable users to passively generate interest — or yield — on the tokens.

“Cap leverages a collective of operators with specialized skills in yield generation to democratize yield previously untapped by the masses,” Cap Labs said in a press release. “This yield does not solely rely on crypto-native sources like funding rate arbitrage and token farming, but also on the expertise of traditional institutions like HFT firms, private credit funds and other companies able to capture large-scale yield.”

Cap will also give users the opportunity to earn extra yield through restaking protocols like EigenLayer.

EigenLayer allows people to stake — or lock up — collateral to secure blockchain protocols in exchange for rewards. By deploying an additional layer of ‘lighthouse’ nodes, EigenLayer aims to enable users to earn yield by slashing and slashing candidates on the Beacon Chain.

Cap’s funding news comes at a time when stablecoins are becoming extremely popular, with banking giant Fidelity, President Trump’s World-Liberty Financial, and the state of Wyoming sharing their intentions to create their own stablecoins, and the U.S. Congress focusing its efforts on passing stablecoin legislation.