Ubyx, a new stablecoin clearing platform that aims to jumpstart stablecoin adoption by enabling redemption at face value, has closed a $10 million seed funding round backed by several major crypto investors.
The funding round was led by Galaxy Ventures, with participation from Coinbase Ventures, Founders Fund, VanEck, Paxos and others, according to a Tuesday announcement. The startup plans to launch its platform in the fourth quarter of 2025.
The service will allow regulated banks and fintechs to redeem stablecoins directly for fiat at par value, aiming to reduce friction in stablecoin usage and encourage broader adoption.
Ubyx partners include stablecoin issuer Paxos and financial services-oriented blockchain Ripple, among other players across the financial services and crypto infrastructure sectors.
“Stablecoins become ubiquitous when there is a shared acceptance network, just like cards,” said Mike Giampapa, general partner at Galaxy Ventures.
Cointelegraph reached out to Ubyx for comment but hadn’t received a response at time of publication.
Related: Malaysia launches Digital Asset Hub to test stablecoin, programmable money
Clearing system tackles market fragmentation
Ubyx claims the current stablecoin market faces barriers to mass adoption, with the current stablecoin onchain and offchain setups being a limiting factor. Different stablecoin issuers build their distribution network, which leads to increased costs and a lack of interoperability.
Institutions also cannot currently consider stablecoin holdings as cash equivalents on their balance sheets. Ubyx says its stablecoin clearing system addresses those issues by connecting multiple issuers with multiple receiving institutions.
Related: JPMorgan files ‘JPMD’ trademark for crypto payment services
Intertwining traditional finance and stablecoins
Ubyx aims to integrate stablecoins into traditional finance by “allowing redemption of stablecoins for fiat at par value into existing bank and fintech accounts.” This move aims to reduce market fragmentation and standardize redemption, meaning to support cash-equivalent accounting treatment.
“Just like the internet changed how we communicate, stablecoins on public networks will change how we pay,” said Shan Aggarwal, vice president of corporate and business development at Coinbase Ventures.
The announcement comes amid rising transaction volumes in the stablecoin sector, which processed 19.4 times more value than PayPal over the past 12 months, according to Daren Matsuoka, a data scientist at a16z Crypto.
Ubyx founder and CEO Tony McLaughlin said the service allows a market structure with multiple stablecoin issuers relying on numerous blockchains and currencies to operate on a single network.
Ubyx will initially support multiple blockchains, including Aptos, Arbitrum, Avalanche, Base, Canton, Concordium, Hedera, Polygon, Solana, Starknet, Stellar, Sui, XDC, XRPL and ZKsync.
The firm is also launching with key infrastructure partners, including BitGo, Copper, Chainalysis and Fireblocks.
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