Ubyx, a new stablecoin clearing startup founded by ex-Citigroup executive Tony McLaughlin, has closed a $10 million seed funding round led by Galaxy Ventures and backed by prominent investors including Coinbase Ventures, Founders Fund, VanEck, Paxos, and others. The London-based firm aims to launch its platform by Q4 2025 to address fragmentation issues in the stablecoin market by enabling stablecoins from multiple issuers to be redeemed at face value through a single interoperable network.
The clearing system will allow regulated banks and fintech companies to redeem stablecoins directly for fiat currency, reducing friction and encouraging broader adoption. Partnering with key stablecoin issuers such as Paxos and Ripple, Ubyx proposes a network that can support multiple blockchains including Aptos, Arbitrum, Avalanche, Base, Hedera, Polygon, Solana, XRP Ledger, and more.
Ubyx intends to bridge traditional finance and the crypto ecosystem by allowing stablecoin redemption at par into existing bank and fintech accounts with compliance features like AML and KYC checks. This will help stablecoins gain recognition as cash equivalents on institutional balance sheets, a vital step for mass adoption. The startup is also supported by infrastructure providers like BitGo, Copper, Chainalysis, and Fireblocks.
Transaction volumes in the stablecoin sector have surged recently, processing nearly 20 times more value than PayPal over the past year. This platform aims to tackle inefficiencies caused by each issuer building separate off-ramp infrastructures and fragmented distribution networks. Industry observers note that stablecoins are evolving into a critical "money rail of the internet," with major commerce and banking players exploring their own stablecoin initiatives amid favorable regulatory developments.