Stablecoin startup Ubyx raises $10 million, led by Galaxy Ventures

Gate News bot news, Ubyx Inc., a stablecoin startup founded by Citigroup veteran Tony McLaughlin, has completed a $10 million financing round, led by Galaxy Ventures, with participation from Peter Thiel's Founders Fund, Paxos, VanEck, and others. Ubyx is building a clearing system that connects stablecoin issuers, banks, and fintech companies, aiming to reduce the friction for users paying with encryption tokens.

McLaughlin stated in an interview that Ubyx's goal is to address these issues by establishing a global stablecoin acceptance network, similar to the credit card acceptance networks of Visa and Mastercard. "Even the smallest banks in the world can issue Visa cards because they do not need to establish their own acceptance networks, which will enable people to bring stablecoins to banks, and banks will also extend credit based on the equivalent amount in their accounts."

Ubyx plans to launch its network by the end of this year and will support blockchains including Solana, Base, Canton, and XRP Ledger. The company has partnered with stablecoin issuers such as Paxos, Ripple, and AllUnity, as well as several large encryption wallet and technology providers.

According to McLaughlin, the network will also accept other forms of digital currencies, such as tokenized deposits and central bank digital currencies. He added that after going live, Ubyx will seek to raise funds from banks and fintech companies, allowing these stakeholders to become part owners of the network.

Source: Bloomberg