Decentralized finance platform Ubyx secures $10 million in funds for its stablecoin settlement network.
In a move aimed at bridging the gap between the crypto and traditional finance worlds, Ubyx, a new company founded by Citi veteran Tony McLaughlin, has announced plans to create a regulated, global clearing network for stablecoins. The network is designed to standardize and streamline the process of redeeming stablecoins for fiat currency at face value, directly into existing bank and fintech accounts.
Key elements of Ubyx’s approach include universal redemption, interoperability, regulatory compliance, and enterprise integration. The universal redemption feature allows regulated banks and fintechs to redeem stablecoins at par value, eliminating the need for specialized crypto accounts or complex on-ramp/off-ramp processes. Interoperability involves building a multi-issuer platform, enabling any supported stablecoin to be used and redeemed, breaking down barriers between different stablecoin networks. Regulatory compliance ensures the clearing system operates within regulatory frameworks, allowing institutions to treat stablecoin holdings as cash equivalents on their balance sheets. Enterprise integration involves partnering with infrastructure providers to help banks and fintechs quickly and compliantly connect to the Ubyx network.
Ubyx has already secured a robust group of partners, including Paxos, Ripple, Agora, Transfero, Monerium, GMO Trust, BiLira, Juno (a Bitso company), Brale, Minteo, Tokenised GBP, Avenia, Agant, AllUnity, and Eurodollar. Kaleido, a leading enterprise blockchain platform, is also a launch partner, helping enterprise clients integrate with the Ubyx clearing system.
Mike Giampapa, General Partner of Galaxy Ventures, which led Ubyx’s $10 million seed funding round, stated that stablecoins become widely accepted when there is a shared acceptance network, similar to cards. This clearing system is particularly beneficial for corporates using stablecoins for cross-border payments.
Other backers in the round include Founders Fund, Paxos, Payoneer, and others. Axelar and LayerZero have been signed up for interoperability purposes, while Digital Asset, IntellectEU, and Chavanette Advisors are involved in the company's blockchain technology. Zuehlke and TRM Labs have been brought on for blockchain analytics, and Ubyx plans to provide a distribution and redemption service for numerous stablecoins.
After Trump’s election victory, Tony McLaughlin anticipated that regulatory obstacles hindering stablecoin adoption would diminish. McLaughlin is also the architect of the Regulated Liability Network, a unified ledger for institutions incorporating CBDC, tokenized deposits, and regulated stablecoins.
Ubyx’s strategy is expected to encourage broader adoption of stablecoins, reduce costs, and market fragmentation, positioning the company as a key enabler for mainstream financial adoption of digital assets.
- Tony McLaughlin, the founder of Ubyx, envisions that the company's regulated clearing network for stablecoins, designed to standardize and streamline the process of redeeming stablecoins for fiat currency, will be a key factor in encouraging wider adoption of stablecoins in the industry.
- Ubyx's approach to stablecoin redemption, which includes features such as universal redemption, interoperability, regulatory compliance, and enterprise integration, aims to make it easier for banks and fintechs to treat stablecoin holdings as cash equivalents, potentially positioning stablecoins like cards in terms of widespread acceptance.
- In addition to partnering with various infrastructure providers to help banks and fintechs connect to the Ubyx network, the company also plans to provide a distribution and redemption service for numerous stablecoins, further strengthening its position as a key enabler for the mainstream financial adoption of digital assets, including Central Bank Digital Currencies (CBDCs).
