cap

About cap

Cap operates as a stablecoin protocol that provides credible financial guarantees through two main products: a dollar-denominated stablecoin, cUSD, and a yield-bearing savings product, stcUSD. The company was founded in 2024 and is headquartered in New York.

The protocol is designed as a decentralized marketplace that coordinates lending, collateral management, and yield generation via smart contracts. It involves three primary participant groups: cUSD holders who mint the stablecoin, stcUSD holders who stake cUSD to earn yield, and institutional operators who borrow from the protocol to execute investment strategies. The cUSD stablecoin is issued on the Ethereum blockchain and is backed on a 1:1 basis by a reserve of regulated, transparently attested stablecoins such as USDC and USDT. This structure allows cUSD to be redeemable for any of the available reserve assets.

Yield is generated through a curated market of institutional operators who engage in fully covered private credit activities. These operators, which can range from high-frequency trading firms to private equity shops, borrow from the protocol to deploy their own scalable, yield-generating strategies. A key feature of the protocol is that the risk associated with this yield generation is covered through a shared security model, providing users with downside protection that is verifiable by code. This system is managed by six core smart contract modules that handle everything from storing reserve assets and issuing tokens to managing borrowing, liquidations, and access controls.

The company has successfully raised capital to fuel its development, securing an $11 million seed funding round in April 2025. This round saw participation from notable investors including Franklin Templeton, Triton Capital, IMC, Flow Traders, and GSR.