Ubyx, a burgeoning startup helmed by former Citigroup executive Tony McLaughlin, has successfully secured $10 million in a seed funding round. The London-based venture, which aspires to revolutionize the stablecoin market by establishing a global clearing system, has garnered support from prominent backers such as Galaxy Ventures and Coinbase Ventures. The aim is to untangle the web of fragmentation that currently plagues the stablecoin sector—a move that could significantly streamline the infrastructure for issuers and adopters alike.
A New Dawn for Stablecoins
Here’s the catch—Ubyx’s approach is ambitious, and it might just be the shake-up the stablecoin market has been waiting for. By developing a common clearing system, Ubyx intends to allow stablecoins from a variety of issuers to be redeemed at face value into bank or fintech accounts. This would eliminate the cumbersome and costly need for each issuer to develop its own off-ramp infrastructure. It’s akin to a small bank issuing a Visa card without needing to build its own merchant network—simplifying the process significantly.
Tony McLaughlin, Ubyx’s founder and CEO, articulated this vision in a recent press release: “Ubyx enables a pluralistic market structure with multiple issuers, multiple blockchains, and multiple currencies in a global, interoperable network.” This concept of a versatile system could be the key to overcoming regulatory hurdles that have historically stymied stablecoin adoption, such as meeting accounting standards to be treated as cash equivalents—a critical step towards institutional acceptance. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
The Involvement of Heavyweights
With the likes of Ripple, Paxos, Transfero, and Monerium already on board, Ubyx’s system is poised to support redemption through regulated financial institutions. This includes rigorous compliance checks like anti-money laundering (AML) and know-your-customer (KYC) protocols. The project plans to launch later this year, supporting over a dozen blockchains including heavyweights like Solana, Arbitrum, and the XRP Ledger. As explored in our recent coverage of SocGen’s Crypto Arm unveiling a Dollar Stablecoin on Ethereum and Solana, the integration of stablecoins across multiple blockchains is becoming a pivotal trend.
The timing, it seems, is impeccable. As Bernstein reports, stablecoins are evolving into what could be the “money rail of the internet.” This evolution is underpinned by significant legislative advancements in stablecoin regulation expected in the U.S. soon. Meanwhile, whispers of commerce giants like Walmart and Amazon considering their own stablecoin ventures suggest a burgeoning interest in this financial frontier. Not to mention, major U.S. banks are reportedly in discussions to launch a joint stablecoin in a bid to stave off competition from the crypto sphere.
Navigating the Road Ahead
Yet, while the prospects appear promising, the road to a unified stablecoin clearing system isn’t devoid of challenges. Questions linger about interoperability and security—two perennial concerns in the crypto universe. Moreover, the success of Ubyx will depend on widespread adoption across diverse financial ecosystems and the ability to maintain robust compliance in an ever-evolving regulatory landscape.
As the year unfolds, the crypto community will be watching closely to see if Ubyx’s vision of a seamless, interconnected stablecoin network can materialize. Its success could very well redefine how digital currencies are integrated into the global financial system. However, as with any ambitious endeavor, the potential for unforeseen hurdles looms large. Only time will tell if McLaughlin’s gamble pays off, but one thing is certain—Ubyx has set the stage for a fascinating next act in the stablecoin saga.
Source
This article is based on: Stablecoin Clearing Startup Ubyx Raises $10M Round Backed by Galaxy, Coinbase, Others
Further Reading
Deepen your understanding with these related articles:
- Ripple Gains Regulatory Approval for RLUSD Stablecoin in Dubai
- Senate Stablecoin Bill Likely to Win Massive Bipartisan Support, Dem Lawmaker Says
- Senate Begins Passage of Stablecoin Bill as House Marks Market-Structure Wins
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
