Codex to launch a blockchain network for stablecoins using Optimism layer-2

Codex, a blockchain startup, is building a new blockchain network focuses only on stablecoins.

This comes as the stablecoin market grows to around $230 billion.

According to Fortune, Codex recently raised $15.8 million to make it happen. Investors include Dragonfly Capital, Coinbase, Circle, Cumberland Labs, Wintermute Ventures, and others.

Codex plans to build its stablecoin-only network on Optimism, a layer-2 solution that makes Ethereum faster and cheaper. Co-founder and CEO Haonan Li said they’re avoiding general-purpose blockchains because those aren’t efficient for real-world uses.

The goal is to offer a network where fees are stable and not affected by blockchain traffic. Codex also wants to make it easier for users to turn their stablecoins into regular money by working with crypto exchanges and local brokers.

Li said he believed stablecoins would become a big deal back in 2023, even when many in the crypto world didn’t agree.

Co-founder, Victor Yaw, pointed out that although the stablecoin market has grown a lot, 60 times over the past six years, it still makes up less than 2% of offshore U.S. dollar deposits. In short, they think there's a lot more room to grow.

Victor on X: "1/ We’re coming out of stealth. Codex has raised $16M from @dragonfly_xyz (led by @hosseeb and @HadickM ), @circle, @coinbase, @CumberlandLabs, @wmt_ventures, and others. We’re building vertically integrated stablecoin infrastructure fit for business use." 

Despite a rough start to the year for crypto markets, stablecoins have remained strong. In fact, supply increased by $30 billion in the first quarter of the year.

Codex isn’t the only one building in this space. Another company, 1Money, raised $20 million in January to work on its own stablecoin payment network.

1Money’s founder, Brian Shroder, believes stablecoins will expand beyond just the U.S. dollar and will include multiple currencies to meet local needs around the world.