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.

The total funding — announced at the close of a recent $8 million seed round — will be used to develop Cap’s stablecoin engine, which is slated to launch later this year. Cap raised $3 million in a previous funding round.

Stablecoins are a type of cryptocurrency whose value is directly tied to another asset, like the U.S. dollar. Cap’s system is built so users may generate passive 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 explained 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.”

According to the statement, Cap will give users the opportunity to earn extra yield through restaking protocols like EigenLayer. Restaking protocols allow people to stake — or lock up — collateral to secure blockchain protocols in exchange for rewards.

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.