Ubyx Secures $10 Million for Global Stablecoin Clearing System
A startup named Ubyx, started by ex-Sit Group executive Tony McLaughlin, has successfully raised $10 million to develop a worldwide clearing system for stablecoins, which aims to enhance the usage within the sector.
This funding round was led by Galaxy Ventures and includes investment from Coinbase Ventures, Founders Fund, Paxos, VanEck, among others.
Based in London, Ubyx is addressing a persistent challenge in the stablecoin market: fragmentation. Currently, every issuer needs to create their specific infrastructure for off-lamping, which tends to be both costly and inefficient.
The company proposes a unified clearing framework that facilitates the redemption of stablecoins from various issuers at face value for bank or fintech accounts. Ubyx believes that eliminating the need for every publisher to establish its distribution network will ultimately curb market fragmentation.
Ubyx’s vision includes enabling all banks to accept and redeem compliant stablecoins, allowing smaller banks to issue Visa cards without the requirement of building an extensive merchant network. This improvement could potentially align with accounting standards, allowing stablecoins to be recognized as cash equivalents, which is vital for gaining institutional backing.
According to McLaughlin, the founder and CEO of Ubyx, “UBYX creates a multidimensional market structure that integrates multiple issuers, blockchains, and currencies into a single global, interoperable network.”
Ubyx has already partnered with issuers like Ripple, Paxos, Transfero, and Monerium.
The clearing system will work with regulated financial entities and will incorporate compliance measures, such as anti-money laundering checks, to learn about its clients. The launch is expected later this year, with support for 12 blockchains, including Solana, Arbitrum, and XRP ledgers.
As noted by Bernstein, funding rounds like this are emerging as stablecoins are positioned to transform into what they describe as an “internet money railroad.” Major retail players like Walmart and Amazon are rumored to be exploring their own stablecoin options. Additionally, many prominent U.S. banks are evaluating the potential for a joint stablecoin to prevent competition from the cryptocurrency sector.
