Ubyx Raises $10 Million from Galaxy, Coinbase to Tackle Stablecoin Fragmentation Amid JP Morgan Crowding Warning

Ubyx Secures $10M to Unify Stablecoin Clearing

Ubyx, a London-based startup founded by former Citigroup executive Tony McLaughlin, raised $10 million in a seed round led by Galaxy Ventures, with support from Coinbase Ventures, Founders Fund, Paxos, VanEck, and others.

The company is building a global clearing system to address the stablecoin market’s fragmentation, enabling stablecoins from issuers like Ripple, Paxos, Transfero, and Monerium to be redeemed at face value into bank or fintech accounts.

Set to launch in Q4 2025, the platform will support over a dozen blockchains, including Solana, Arbitrum, and XRP Ledger, while ensuring compliance with anti-money laundering and know-your-customer regulations. Modeled after Visa’s infrastructure, Ubyx allows banks to accept any compliant stablecoin without proprietary systems, positioning stablecoins as cash equivalents for institutional adoption.

McLaughlin calls stablecoins the “money rail of the internet,” a vision bolstered by the recent Senate passage of the GENIUS Act, which provides regulatory clarity for such innovations.

JP Morgan Highlights Market Crowding as Senate Approves Regulatory Framework

At the DigiAssets 2025 conference, JP Morgan executive Emma Lovett voiced concerns about “overcrowding” in the stablecoin market, where transaction volumes have outpaced PayPal’s by 19.4 times over the past year.

This caution coincides with JP Morgan’s trademark filing for “JPMD,” signaling a potential stablecoin launch, which the bank confirmed on June 17, 2025, with its JPMD stablecoin operating on Ethereum’s Layer 2 Base chain, backed by Coinbase Global.

Major banks like Bank of America, Citigroup, and Wells Fargo are also exploring stablecoin partnerships, but their hesitancy has eased with the U.S. Senate’s 68-30 vote to pass the GENIUS Act on June 17, 2025.

The involvement of commerce giants like Walmart and Amazon, who are considering their own stablecoins, further intensifies competition. Lovett’s warning underscores the challenge of fragmentation, even as innovative solutions like Ubyx aim to unify the ecosystem.

Stablecoin Market Poised for Growth with Ubyx Leading Innovation

The stablecoin sector is witnessing unprecedented momentum, as reflected in its $232 billion market cap and some bullish forecasts projecting growth to as much as $3.7 trillion by 2030. This expansion is being driven by innovations such as Ubyx’s reportedly $10 million-backed clearing system, though concerns about market saturation continue to temper expectations.

Galaxy Ventures and Coinbase Ventures, by backing Ubyx, signal strong confidence in the stablecoin clearing race, strategically positioning themselves in a market ripe for consolidation. Ubyx’s interoperable platform could unify fragmented systems, enabling seamless transactions across blockchains and issuers.