Ubyx Raises $10 Million to Standardize Stablecoin Redemption

Ubyx, a startup focused on standardizing stablecoin redemption, has successfully raised $10 million in seed funding. This investment round was spearheaded by Galaxy Ventures and included contributions from notable crypto investors such as Coinbase Ventures, Founders Fund, VanEck, and Paxos. The startup aims to launch its platform in the fourth quarter of 2025, with a mission to facilitate the redemption of stablecoins directly for fiat at par value, thereby reducing friction in stablecoin usage and promoting broader adoption.

The platform will enable regulated banks and fintech companies to redeem stablecoins for fiat currency at face value, a feature designed to streamline the process and encourage more widespread use. Ubyx has already secured partnerships with key players in the financial services and crypto infrastructure sectors, including stablecoin issuer Paxos and blockchain company Ripple. These collaborations are expected to enhance the platform's capabilities and reach.

The current stablecoin market faces significant barriers to mass adoption, primarily due to the fragmented nature of on and offchain setups. Different stablecoin issuers have built their own distribution networks, leading to increased costs and a lack of interoperability. Additionally, institutions cannot currently consider stablecoin holdings as cash equivalents on their balance sheets. Ubyx's clearing system aims to address these issues by connecting multiple issuers with multiple receiving institutions, thereby fostering a more integrated and efficient market.

Ubyx's approach to integrating stablecoins into traditional finance is centered on allowing the redemption of stablecoins for fiat at par value into existing bank and fintech accounts. This move is intended to reduce market fragmentation and standardize redemption processes, potentially supporting cash-equivalent accounting treatment. The startup's founder and CEO, Tony McLaughlin, emphasized that the service will enable a market structure where multiple stablecoin issuers relying on numerous blockchains and currencies can operate on a single network.

The platform will initially support a wide range of blockchains, including Aptos, Arbitrum, Avalanche, Base, Canton, Concordium, Hedera, Polygon, Solana, Starknet, Stellar, Sui, XDC, XRPL, and ZKsync. Ubyx is also launching with key infrastructure partners such as BitGo, Copper, Chainalysis, and Fireblocks, which are expected to provide robust support and security for the platform.

The announcement of Ubyx's funding round comes at a time when the stablecoin sector is experiencing significant growth in transaction volumes. This development underscores the increasing importance of stablecoins in the financial ecosystem and highlights the potential for Ubyx to play a pivotal role in standardizing and driving the adoption of these digital assets.