Ubyx, a new StableCoin -Clear platform aimed at jumping Stablecoin adoption by enabling the redemption of the face value, closed a $ 10 million collapse of seed funding supported by some major crypto investors.
Funding is led by Galaxy Ventures, with participation from Coinbase Ventures, Founders Fund, Vaneck, Paxos and others, according to a Tuesday announcement. The start plan to launch its platform in the fourth quarter of 2025.
The service will allow regulated banks and fintechs to redeem the stablecoins directly for FIAT to the PAR value, aimed at reducing strife with stablecoin use and encourage the broader adoption.
Ubyx partners include Stablecoin Issuer Paxos and financially oriented blockchain ripple services, among other players throughout the financial services and crypto infrastructure sectors.
“Stablecoins become a lot of places when there is a shared network of reception, such as cards,” said Mike Giampapa, general partner in Galaxy Ventures.
The cointelegraph reached Ubyx to comment but did not receive a response at the time of publication.
Related: Malaysia launches Digital Asset Hub to test Stablecoin, Programmable Money
System Clear holds in market fragmentation
Ubyx claims the current Stablecoin market facing barriers to mass adoption, along with current Stablecoin Onchain and Offchain’s settings that are a limiting factor. Various stablecoin providers build their distribution network, leading to increased costs and lack of interoperability.
Institutions also do not consider stablecoin handles as cash equivalent to their balance sheets. Ubyx said the StableCoin Clear system address issues by connecting many providers with multiple receiving institutions.
Related: JPMorgan filed a ‘JPMD’ trademark for crypto payment services
Intertwining traditional finance and stablecoins
Ubyx aims to integrate stablecoins into traditional finances by “allowing the redemption of stablecoins for fiat to par value in existing bank and fintech accounts.” This step aims to reduce market degradation and standard of redemption, which means supporting cash equal to cash.
“As the Internet has changed how we talk, Stablecoins on public networks will change how we pay,” said Shan Aggarwal, vice president of corporate development and business in Coinbase Ventures.
The announcement came amid increased volume of transaction in the Stablecoin sector, which processed 19.4 times more value than Paypal in the last 12 months, according to Daren Matsuoka, a data scientist in A16Z Crypto.
Ubyx founder and CEO Tony McLaughlin said the service provides a market structure with many stablecoin providers relying on many blockchains and money to work on a single network.
Ubyx will first support many blockchains, including aptos, arbitrum, avalanche, base, canton, concordium, hedera, polygon, solana, starknet, stellar, sui, XDC, XRPL and Zksync.
The firm also launches with major infrastructure partners, including BitGo, copper, chainalysis and fireblocks.
Magazine: Crypto wants to overthrow banks, now they turn into the stablecoin fight
