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Ubyx, a recently launched stablecoin clearing platform intended to catalyze stablecoin acceptance by facilitating redemption at nominal value, has concluded a $10 million seed financing round supported by several prominent cryptocurrency investors.
The financing round was spearheaded by Galaxy Ventures, with contributions from Coinbase Ventures, Founders Fund, VanEck, Paxos, among others, as stated in a Tuesday announcement. The startup is slated to launch its platform in the fourth quarter of 2025.
The service will enable regulated banks and fintech companies to convert stablecoins directly to fiat at par value, intending to diminish friction in stablecoin application and promote wider acceptance.
Ubyx collaborates with stablecoin issuer Paxos and blockchain entity Ripple, along with other stakeholders in the financial services and crypto infrastructure domains.
“Stablecoins achieve ubiquity when there exists a unified acceptance network, similarly to cards,” remarked Mike Giampapa, general partner at Galaxy Ventures.
Cointelegraph reached out to Ubyx for a statement but had not received a reply at the time of publication.
Related: Malaysia initiates Digital Asset Hub to evaluate stablecoin, programmable currency
Clearing system addresses market fragmentation
Ubyx asserts that the current stablecoin landscape encounters obstacles to widespread adoption, with present onchain and offchain configurations serving as a limiting factor. Various stablecoin issuers develop their distribution networks, resulting in elevated expenses and a deficiency in interoperability.
Institutions are also unable to classify stablecoin assets as cash equivalents on their balance sheets. Ubyx claims its stablecoin clearing system resolves these challenges by linking multiple issuers with various receiving institutions.
Related: JPMorgan files ‘JPMD’ trademark for cryptocurrency payment offerings
Integrating traditional finance and stablecoins
Ubyx strives to embed stablecoins within traditional finance by “permitting the redemption of stablecoins for fiat at nominal value into existing banking and fintech accounts.” This strategy aims to minimize market fragmentation and establish standardized redemption, thus facilitating cash-equivalent accounting treatment.
“Just as the internet reshaped our communication, stablecoins on public networks will transform our payment methods,” declared Shan Aggarwal, vice president of corporate and business development at Coinbase Ventures.
The announcement comes amid increasing transaction volumes in the stablecoin domain, which processed 19.4 times more value than PayPal over the previous year, according to Daren Matsuoka, a data scientist at a16z Crypto.
Ubyx founder and CEO Tony McLaughlin stated that the service facilitates a market structure with multiple stablecoin issuers depending on various blockchains and currencies to function within a unified network.
Ubyx will initially accommodate numerous blockchains, including Aptos, Arbitrum, Avalanche, Base, Canton, Concordium, Hedera, Polygon, Solana, Starknet, Stellar, Sui, XDC, XRPL, and ZKsync.
The company is also launching alongside essential infrastructure collaborators, such as BitGo, Copper, Chainalysis, and Fireblocks.
Magazine: Crypto aimed to overthrow banks, now it’s transforming into them in the stablecoin battle
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