Dialogue with Plasma CEO: Behind the Airdrop Craze, How Plasma is Restructuring the stablecoin Value Chain?

Guest: Paul Faecks, Plasma CEO

Host: Andy; Robbie

Podcast Source: The Rollup

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

Release date: September 28, 2025

Key Points Summary

On the day after the Plasma mainnet and the release of the XPL token, The Rollup spoke with Plasma CEO Paul Faecks to discuss the following topics:

• Airdrop and XPL allocation strategy
• 280 million Binance users have gained on-chain earnings
• XPL Token Vision
• Plasma One: Providing new banking services for those without bank accounts.
• Competing with Visa at a market value of over $50 billion
• Why “scalability” will be different in five years
• Tether partnerships and the dominance of USDT

Summary of Highlights

• Decisions on token allocation and distribution are most importantly made in an open manner to allow more people to participate. Investing 1 dollar on-chain could potentially yield a return of 10,000 dollars, which is actually in line with our consistent operating philosophy.
• Before the mainnet launch, we have reached an important revenue partnership with Binance. Through this collaboration, users can deposit directly from Binance's platform to Aave on Plasma.
• Relying solely on the native user base of the crypto space is not a sustainable model. It is necessary to promote genuine organic usage, not just depend on incentive mechanisms to attract users, but to ensure that the platform itself is appealing and can meet the real needs of users.
• We have always hoped that this will ultimately become a community-driven project. I believe that the decisions made regarding Token allocation and distribution are fundamentally based on this philosophy, aimed at making the entire ecosystem more in line with community needs.
• Stablecoins are at the beginning of a turning point in the industry. Currently, the total circulating supply of stablecoins in the market is approximately 260 billion to 270 billion USD, and we believe this market will eventually reach the trillion-dollar level.
• I believe that there will be dedicated stablecoin chains in the future, and the total amount of stablecoins on these chains will reach hundreds of billions of dollars, with daily trading volumes potentially reaching tens of trillions of dollars.
• Stablecoins have become a core strategic tool of global dollar monetary policy, as they can attract buyers who have no preference restrictions on debt prices.
• The entire design of the XPL system is closely integrated with the interests of the community, while ensuring that the XPL token plays a central role in the ecosystem.
• The vision of Plasma is very clear: global commerce will gradually shift towards stablecoins, and Plasma will become an important driving force behind this transition.
• We have always built Plasma around the ecosystem of USDT. While we support a multi-stablecoin world, Tether's market dominance and extensive distribution network are very difficult to replicate.

Reflection on the release of XPL ###

Andy:

Paul, let's talk about the situation over the past few days, how do you feel?

Paul:

This period has really been very tense. We have been busy all week because launching a blockchain is not as simple as just opening a network. There are many dynamic factors involved, including some external variables, and these variables are not completely within our control. So, it has really been a week of enormous pressure. However, so far, everything has gone smoothly, and we are very happy. But last night, everyone was indeed exhausted.

Robbie:

So what do you think is the most difficult part? Looking back now, is the hardest phase behind us?

Paul:

Not at all. I believe the real challenges are still ahead. We have just announced the Plasma One product, and this is clearly just part of the work before the launch of the chain. I feel that this is actually the starting point for us to truly begin building our vision. While the chain itself, the DeFi ecosystem, and the exchange components are all very important, there is still much work ahead of us to complete.

Andy:

Now, we would like to understand your future vision, such as how you plan the development of your product line and how you view the future development direction of the chain. Obviously, due to the design of the pre-storage mechanism, Plasma has already attracted a lot of activity and attention. Before delving into the future, I have a question to ask: Why did you decide to adopt the mechanism where pre-storing USDT can obtain airdrops of XPL tokens? For example, the allocation to users who deposit in advance has already caused a sensation on the network. Some even say that if you invest 1 dollar on the chain, you might get a return of 10,000 dollars.

Of course, the reality is that not everyone can operate at this ratio, but many users have indeed benefited from it. I think you have successfully avoided some negative public opinion that similar mechanisms may typically provoke. 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 usual operating methods. For example, we set very clear and transparent parameters during the public sale, allowing anyone to participate. This is very important to us because we want to enter the market in an open manner, enabling more people to get involved. In addition, Nathan is responsible for the work related to the stablecoin collective. He has performed exceptionally well in this area and achieved remarkable results.

At the same time, I believe we have always hoped to turn 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 like it. Only by promoting from the grassroots level can stablecoins truly function and demonstrate their value. I believe the decisions we have made regarding token allocation and distribution are fundamentally based on this concept, aiming to bring the entire ecosystem closer to community needs.

Sustainability of yields on Plasma

Andy:

Let's talk about some current dynamics on the chain. For example, Aave and Ethena’s USDE are offering very attractive yields, along with circular operations and the XPL reward mechanism. These have attracted quite a few users. So, what is the best way to earn yields on Plasma right now? How is the entire ecosystem performing? What are your thoughts on the sustainability of the yield model related to XPL token rewards? How do you hope to transform this yield model into a mechanism that can attract long-term community participants, rather than a simple “farm and dump” phenomenon? Can you elaborate on your strategies and vision?

Paul:

Of course, this is a very good question. I believe there are indeed quite a few examples showing that some projects have a high TVL (Total Value Locked), but due to a lack of practical application scenarios, they ultimately fail to make substantial progress. We are very aware of this complexity. For us, we always believe that allocation is key to ensuring network value. As a stablecoin network, you need as many nodes to join as possible in order to enhance the value of the entire network.

One point that may have been overlooked is that, prior to the mainnet launch, we had reached an important revenue partnership with Binance. Through this partnership, users can deposit to Aave on Plasma directly 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 of token distribution through such partnerships, allowing on-chain money markets to be accessible to any user who sees their value.

Of course, relying solely on the native user base of the crypto space is not a sustainable model. Such user groups are usually short-term and subject to considerable market volatility. Therefore, our strategy cannot be centered only around these users, but must expand to a broader audience.

Returning to your question about the sustainability of Plasma DeFi, I think a key point is that we need to promote genuine organic usage. Organic usage refers to users utilizing our platform based on actual needs rather than purely on reward mechanisms. In other words, we cannot solely rely on incentive mechanisms to attract users, but must ensure that the platform itself is attractive and can meet users' real needs. On this point, I believe we have made some progress and will continue to focus on this direction in the future.

Successfully copied Plasma

Robbie:

Your team indeed has a unique advantage. Generally speaking, blockchain projects launch their tokens only after the mainnet goes live and start planning their ecosystem to attract liquidity through the tokens. However, you have achieved these goals even before the token launch. This makes me curious about what special qualities you possess that other teams do not?

Paul:

We have the best team.

Robbie:

Do you think other teams will try to replicate what you do, but may ultimately fail because they cannot assemble a team like yours?

Paul:

Yes, I hope so. But if they don't do so, I may need to have some specific communication with them. However, after all, I truly believe we have an outstanding team. I sincerely think that having such a smart team with long-term goals is our greatest advantage. They not only have the capability but are also genuinely committed to creating valuable things, which is precisely the most precious asset of any company.

Stablecoins are a turning point in the industry.

Andy:

I talked with Jeremy Elair last week about how other teams are getting involved in this field. He shared Circle's views on Arc and their chain, as well as Broads' USDC distribution strategy. There are now some other competitors, such as Stripe, Circle, and Tether, who are all trying to create a global stablecoin transfer network.

When talking about competitors, we usually think of large payment processing companies like Visa. These companies have a market capitalization of over $50 billion and handle transaction volumes in the trillions every day. I discussed this topic with Jeremy, and he believes that the goal of USDC is to be ubiquitous like Netflix, appearing on smart TVs, smartphones, and even smart refrigerators.

I think Paul's philosophy is quite similar, and he has executed it very successfully on a global scale. When it comes to Arc and chains, he sees them as a natural evolution of Web 2.0 technologies. For example, you can use Google Chrome on a Mac, stream services on Apple TV and iPad, play shows on LG or Samsung TVs, and even use Apple products on a Google Chromebook. This integration of technology stacks is precisely the focus of our discussion. He places great emphasis on the idea of “growing the pie”, rather than competing for existing market share. Therefore, I would like to ask you a question.

In the competitive landscape of stablecoin chains, especially with Plasma as a leader and market pioneer in this field, what do you believe are your advantages? Under the concept of “expanding the pie,” what significant contributions do you think Plasma can bring to the industry?

Paul:

I believe stablecoins are at the beginning of a turning point in the industry. Currently, the total amount of stablecoins circulating in the market is about 260 billion to 270 billion USD, and we believe this market will eventually reach the trillion level. Many people predict that the growth of stablecoins will far exceed the past, which also makes us full of expectations for the future.

Looking back at our development journey, the initial problem we faced was not how to compete with payment giants like Stripe, but whether everything we did truly mattered. Why do stablecoins need a dedicated chain? Why can't we just use Ethereum directly? Over time, the market's demand for stablecoin chains has gradually become apparent, which reassures me as it reflects the true needs of the industry.

Now, we indeed have a competitive relationship 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 this industry “massive” battle is key. Currently, no projects have truly succeeded in this area, including Ethereum and Tron. I believe that the definition of “massive” will change in the next two to five years. I believe there will be dedicated stablecoin chains in the future, with the total amount of stablecoins on these chains reaching hundreds of billions of dollars, and daily transaction volumes potentially reaching trillions of dollars. This is the future we are striving to build. Therefore, we will not focus too much on some small-scale competition, such as the dynamics of Temple or Codex. While I have great respect for these teams and they are also pursuing their own goals, our direction is much grander.

The impact of stablecoins on a saturated market ###

Robbie:

Another notable change is the market's acceptance of stablecoins. There is now a consensus that the circulation of stablecoins will reach the trillion level. This is not only a result of market development but has also become a part of U.S. government financing. Stablecoin companies are being used as a tool for issuing debt, which further promotes the development of stablecoins. I am curious, what impact will it have on the industry when the stablecoin ecosystem reaches a trillion-scale?

People like Arthur Hayes believe that the growth of stablecoins will bring a huge leverage effect to DeFi applications. But more specifically, for some DeFi applications on Plasma, as well as the changes in market competitive forces that you observe, how do you think the industry landscape will evolve? What are the phased changes from now to achieving a trillion scale? What is your view on this transformation process from today to the future?

Paul:

This is a very complex issue that involves changes on multiple levels. But I firmly believe that the future you described is achievable. I think the process of reaching this goal will be quite complicated, especially in the United States, where the strategic importance of stablecoins is increasingly being recognized. Scott Bessent mentioned that stablecoins have become a core strategic tool of global U.S. dollar monetary policy, because they can attract buyers who have no preference restrictions on debt prices. While it may sound like a conspiracy theory, it actually reflects the reality. Stablecoins do solve many problems and provide great development potential in many areas.

Robbie:

The market seems to have accepted this viewpoint. So more specifically, how will it affect the landscape of the blockchain industry when stablecoins are further integrated with other systems?

Paul:

I believe that the boundaries between on-chain and off-chain will become blurred in the future. Over the past few years, the entry of institutions into the crypto space and the definitions of the front-end and back-end of DeFi have been two hot topics, but it has only really started to happen recently. Both are merging in very practical ways. Our current clients have already started using solutions that can connect on-chain and off-chain products. I believe that more similar products will emerge in the future, which will support centralized user interfaces through on-chain processes. This combination of on-chain and off-chain will become a key direction for industry development and is a focus we are very concerned about at Plasma.

Andy:

I completely agree with your point of view. This might also be one of the reasons why you are focusing on the development of the Plasma One product, right? Because stablecoins have very important use cases in cross-border payments, providing services for unbanked individuals, and helping people access strong dollars when they need them the most. These are precisely the goals that cryptocurrencies promised to achieve in 2017, and now crypto technology is regrouping around these use cases.

Paul:

I believe that 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 expected, it is now gradually becoming a reality.

Andy:

So, let's talk about the vision for the PlasmaOne application and Neo Bank. Looking five years ahead, what news headlines do you hope to see regarding the Plasma One application? What is your vision for this application? How do you plan to execute it?

Paul:

I believe that stablecoins as core infrastructure are the perfect tech stack for building consumer-facing products. On one hand, they can serve as a distribution entry point; on the other hand, they can significantly enhance the user experience of financial tools. As a long-term user of stablecoins, I live in an environment with a sound banking system and have access to good fintech products. But I know that such conditions do not apply in most parts of the world. Therefore, I believe that products built on stablecoins can provide users with a better experience than traditional banking systems.

This is exactly why we developed Plasma One, as well as to showcase the potential of stablecoins. We are collaborating with many excellent companies that are also developing on Plasma. We do not dismiss these collaborations, as they clearly hold immense value. Plasma is a great example that demonstrates how stablecoins can serve as a foundation to build truly impressive products.

Plasma distribution strategy

Robbie:

Can you elaborate on the core idea of the distribution strategy? I have a general understanding of this concept, but your previous statement gave me a new perspective. Could you further explain the specific meaning of this strategy and how you apply it in practice?

Paul:

Of course. Our goal is to build a stable and efficient ecosystem, and the key to achieving this lies in leveraging network effects. To accomplish this, we need to ensure that the applications of Plasma can cover as broad a user base as possible, ranging from B2B to B2C. Simply put, our aim is to enable end-users to truly access and utilize the functionalities of Plasma, which is very important. In fact, this is also where Tron stands out in the industry, as they have strong capabilities in the distribution of stablecoins and user outreach. Because of this, we place great importance on this aspect. To drive this goal forward, we need to develop specific applications that can truly showcase the potential of Plasma, and Plasma One is one of the core products we have created for this purpose.

Andy:

From theory to practice, the user experience of Plasma chains seems to be more user-friendly than traditional cryptocurrency systems. For example, when considering the user base of the Plasma One application, I think of markets like Turkey, Syria, Brazil, and Argentina. Users in these regions are often the primary target group for stablecoins like USDT. They generally do not want to deal with complex seed phrases and are unwilling to face cumbersome authorization processes. What they need is a free transfer service and a way to easily and securely send funds to family. At the same time, these users also hope to protect their privacy and even withdraw funds when necessary. While I understand that blockchain is designed differently from traditional payment systems, traditional payment methods do have advantages in certain aspects.

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

Paul:

Absolutely, I completely agree. This is a great recommendation for Plasma One, and I fully support it.

XPL Token Value Accumulation Plan

Andy:

I noticed that Visa's market capitalization is around 50 to 60 billion dollars, and other companies processing trillions of dollars in payments also fall within this range. Many people are paying attention to how the XPL token accumulates 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 could just be a short-term phenomenon. However, the crypto ecosystem is continuously evolving, and I believe this is a positive trend.

How do you think XPL can become a sustainable asset? For those who wish to compare XPL with Circle or other listed companies, can XPL be the best way to access the stablecoin market? How do you make this vision a reality for XPL holders? What do you want to say to them today?

Paul:

Of course I can share. I think this is a question that our team has been thinking deeply about. For the Plasma ecosystem, the XPL token must play a very core role.

We hope to avoid a situation of “dispersed chaos,” where many different entities accumulate some value on their own but fail to form a clear system. Such a model is ultimately not sustainable. When designing the value accumulation mechanism for XPL, we indeed faced quite a bit of complexity, which is a topic we have spent a lot of time researching. In the future, we will elaborate on the details in public forums. Although it is difficult to provide a simple and direct answer now, I can assure you that the design of our entire system is closely aligned with the interests of the community. We will continue to advance in this direction while ensuring that the XPL token plays a core role in the ecosystem.

Partnership between Plasma and Tether

Andy:

The co-founder of Tether mentioned in an interview that his mission is to take startups from 0 to 1. He quoted Peter Thiel's book, believing that Tether is no longer a startup. So, at which stage is Tether in its growth from 0 to 100? His answer was: “I think we are still at the 0.25 stage. From here, our potential growth is limitless. Through innovation, there are many areas we can disrupt and many things we can build. Once people understand the true strategy behind every one of our thoughtfully considered actions, they will realize the true potential of this company.” He defined Tether as a “once-in-a-century company.” In addition, Tether is also seeking to raise $2 billion at a valuation of $500 billion, while the CFTC has also approved the settlement of stablecoins in the U.S. traditional derivatives market.

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

Paul:

First of all, if Tether is currently at the stage of 0.25, then I believe Plasma might still be at the stage of 0.01, and we have a lot of work to do. While it sounds like the goal is far away, I see this as a hopeful beginning. The Tether team has built a truly significant company for the era and has achieved remarkable success through long-term strategic decisions. This is also the direction we hope to emulate with Plasma. In the stablecoin space, USDT has performed exceptionally well. While I might be a bit biased, I truly believe this is a fact. Therefore, we have always centered our development of Plasma around the USDT ecosystem. While we support 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 truly enjoy collaborating with them. I have great respect for Paolo and the entire team.

Robbie:

Considering that the cryptocurrency industry is changing every day, the successful launch of Plasma may introduce some people to this project for the first time. What is the most important information you want these new users to know? Where can they go to learn more?

Paul:

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