Ubyx has raised $10 million in seed funding to tackle one of the biggest hurdles in stablecoin adoption: seamless redemption at face value. The funding round was led by Galaxy Ventures and included heavyweights like Coinbase Ventures, Founders Fund, VanEck, and Paxos. Ubyx plans to roll out its stablecoin clearing platform by Q4 2025.

The service promises to let regulated banks and fintech firms redeem stablecoins directly for fiat currency at a 1:1 ratio—an approach aimed at solving current inefficiencies and boosting institutional trust. By partnering with major players like Paxos and Ripple, Ubyx aims to create a unified redemption standard across the crypto and traditional finance sectors.

According to Ubyx, today’s stablecoin ecosystem is plagued by fragmentation, high operational costs, and a lack of interoperability between issuers. The startup’s clearing model will enable institutions to treat stablecoin holdings more like cash equivalents, making it easier to integrate into traditional balance sheets.

“Stablecoins will only go mainstream when they’re as widely accepted as credit cards,” said Galaxy Ventures' Mike Giampapa. Coinbase Ventures' Shan Aggarwal added that public networks for stablecoins could revolutionize payments, much like the internet transformed communication.

With stablecoins processing nearly 20 times more value than PayPal last year, momentum is clearly building. Ubyx plans to support a wide range of blockchains at launch, including Solana, Polygon, Base, and XRP Ledger. The startup is also backed by major crypto infrastructure providers like BitGo, Fireblocks, Chainalysis, and Copper.

Ubyx CEO Tony McLaughlin says the platform aims to unify diverse stablecoin ecosystems under one network, positioning it to become the standard bridge between crypto and traditional finance.