Exclusive: Codex raises $16 million to build a blockchain just for stablecoins

Yahoo

04-04-2025

Stablecoins, or cryptocurrencies pegged to fiat currencies like the U.S. dollar, are all the buzz in crypto. After fintech giant Ethereum, one of the original decentralized protocols whose cryptocurrency is the second most valuable next to Bitcoin. During this period, Li rubbed shoulders with iconic crypto figures like Ethereum cofounder Vitalik Buterin, and helped launch Optimism's cryptocurrency.
In 2023, he left to found his own company 'with the hunch that stablecoins are what's most important to focus on,' he said. 'At the time, this was a pretty contrarian view among these core crypto people.'
Li has two other cofounders: Victor Yaw, whose family owns Samling, a Malaysian conglomerate that includes oil palm plantations and real estate developments; and Momo Ong, who graduated from Princeton University, worked as a product manager at Meta, and founded his own startup prior to Codex.
Li believes that general-purpose blockchains will never be as efficient as single-purpose decentralized computing platforms. 'They want to address as large of a market as possible,' he said, referring to most blockchain founders. 'And so they end up addressing none of the particular industry segments all that well.'
That's why Li thinks his layer-two stablecoin chain, built on top of Optimism, will be competitive. It's optimized for stablecoins from the ground up, he says. Fees to send stablecoins don't rise or fall sharply depending on increased or decreased activity on the blockchain. There are built-in offramps, or relationships with crypto exchanges or local brokers to cash out stablecoins into fiat currencies. And, while blockchains are public databases, he's working to give users the ability to make certain parts of their transactions confidential, he said.
He's not the first founder to gin up his own stablecoin blockchain. Others, like Plasma, are also building out their own infrastructure. But Hadick, the general partner at Dragonfly, believes Li has the best shot at success.
'It is something people have talked about,' he said, in reference to stablecoin chains. 'It is not something that anybody else has done well.'
This story was originally featured on Fortune.com