Ubyx, a startup established by ex-Citigroup executive Tony McLaughlin, raised $ 10 million to produce a global Stablecoin clearing system aimed at facilitating the adoption of the sector.
The seed of the seed is led by the Galaxy Ventures, with backing from Coinbase Ventures, Founders Fund, Paxos, Vaneck, and others, according to A Press release.
London -based company is looking to solve a long problem in the Stablecoin market: Fragmentation. So far, it says, every giver has to build its own infrastructure on off-ramp, an expensive and poor process.
Ubyx recommends a common clearing system that will allow stablecoins from many providers to redeem the face value in bank or fintech accounts. Removing the need for each given to develop their own distribution network, says Ubyx, will help solve market destruction.
As a small bank can issue a visa card without building a merchant network, Ubyx wants any bank to accept and redeem any following stablecoin.
That can help stablecoins meet accounting standards for treatment as cash equivalent, an important drawback for institutional adoption.
“Ubyx allows a pluralistic market structure with many gives, many blockchains, and lots of currencies in a universal, interoperable network,” the founder and CEO of the company, McLaughlin, said.
Ripple, paxos, transfer, and monerium have already signed in.
The system will support redemption through regulated financial institutions with compliance checks such as anti-money laundering and know your customer. The project is set to live later this year and support a dozen blockchains, including Solana, Arbitrum, and the XRP Ledger.
Funding will come as the Stablecoins are set to thrive on the “Internet Money Rail,” according to Bernstein, as a Main piece of US Stablecoin law is passed.
There are many giant commerces, including Walmart and Amazonhas been reported to be considering the release of their own stablecoins. Most major banks in the US are also weighing LA joint stablecoinin a bid to dispel competition from the crypto space.
