Ubyx, a startup founded by former Sit Group executive Tony McLaughlin, has raised $10 million to build a global Stablecoin clearing system aimed at promoting sector adoption.
The seed round is led by Galaxy Ventures, and according to a press release, it was supported by Coinbase Ventures, Founders Fund, Paxos, Vaneck and others.
The London-based company is trying to solve a long-standing problem in the Stablecoin market: Fragmentation. For now, all publishers say they need to build their own off-lamp infrastructure, an expensive and inefficient process.
Ubyx proposes a common clearing system that allows you to redeem stablecoins from multiple issuers at face value for a bank or Fintech account. Ubyx said removing the need for each publisher to build its own distribution network will help resolve market fragmentation.
UBYX hopes that either bank can accept and redeem compliant stable coins so that small banks can issue visa cards without building a merchant network.
It could help meet accounting standards for stubcoins to be treated as cash equivalents. This is an important hurdle for institutional adoption.
“UBYX enables a multidimensional market structure with multiple issuers, multiple blockchains and multiple currencies into a global, interoperable network,” said McLaughlin, founder and CEO of the company.
Already signed publishers include Ripple, Paxos, Transfero and Monerium.
The system supports reimbursement through regulated financial institutions and learns about its customers using compliance checks such as money laundering. The project will be released later this year and will support 12 blockchains, including Solana, Arbitrum and XRP ledgers.
According to Bernstein, funding rounds occur as Stablecoins are set up to evolve into an “internet money railroad.”
Several commerce giants, including Walmart and Amazon, are reportedly already considering issuing their own stubcoins. Most major US banks are weighing the launch of joint stubcoin to avoid competition with the crypto space.
