Ubyx Raises $10M Seed Funding to Launch Stablecoin Redemption Platform
A new stablecoin clearing platform called Ubyx has secured a $10 million seed funding round to jumpstart stablecoin adoption. The platform aims to enable regulated financial institutions to redeem stablecoins directly for fiat currency at face value.
Galaxy Ventures led the funding round, with participation from Coinbase Ventures, Founders Fund, VanEck, and Paxos, according to an announcement made Tuesday. Ubyx plans to launch its service in the fourth quarter of 2025.
Connecting Issuers and Users
Ubyx’s service will facilitate the redemption of stablecoins for fiat currency at par value for regulated banks and fintech companies. The company states this approach aims to reduce friction in stablecoin usage and encourage broader adoption.
Paxos, a major stablecoin issuer and a participant in this week’s funding round, as well as financial services-focused blockchain firm Ripple, are among Ubyx’s announced partners, indicating broad industry backing across traditional finance and crypto infrastructure.
“Stablecoins become ubiquitous when there is a shared acceptance network, just like cards.”
Addressing Market Fragmentation
Ubyx contends that the current stablecoin market faces adoption barriers due to fragmented on-chain and off-chain systems. Different issuers operate separate distribution networks, leading to higher costs and a lack of interoperability.
Additionally, institutions often cannot treat stablecoin holdings as cash equivalents on their balance sheets. Ubyx claims its clearing infrastructure addresses these issues by interconnected multiple stablecoin issuers and receiving institutions.
The company aims to integrate stablecoins into traditional finance through a system enabling “redemption of stablecoins for fiat at par value into existing bank and fintech accounts.” This is intended to standardize redemption processes and potentially qualify stablecoins for cash-equivalent accounting treatment.
“Just like the internet changed how we communicate, stablecoins on public networks will change how we pay.”
Growing Stablecoin Market
The timing of Ubyx’s launch announcement comes during a period of rapidly expanding stablecoin usage. According to data scientist Daren Matsuoka of a16z Crypto, stablecoins process 19.4 times more value over the past 12 months than PayPal.
Ubyx founder and CEO Tony McLaughlin stated the platform will create a unified market structure, allowing multiple stablecoin issuers operating across numerous blockchains to interact within a single clearing network.
Initially, the platform will support multiple blockchains including Aptos, Arbitrum, Avalanche, Base, Canton, Concordium, Hedera, Polygon, Solana, Starknet, Stellar, Sui, XDC, XRPL, and ZKsync.
Key infrastructure providers joining at launch include BitGo, Copper, Chainalysis, and Fireblocks.
[Image: Stablecoins showed significantly higher transaction volumes than PayPal over the last 12 months]
Caption: Stablecoins processed 19.4 times more value over the past 12 months than PayPal. Source: Daren Matsuoka
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