Utopia Labs Revolutionizes USDC Payments, Bypassing CEX: Report
- The service requires businesses to submit their KYB and KYC for application, and USDC payments are limited to the Ethereum network.
- Utopia Labs is promoting the interoperability between fiat and cryptocurrencies by allowing businesses to send USDC to any US bank account without going through CEX.
According to The Block, Utopia Labs now enables USDC payments to US banks without CEX, improving interoperability and adoption. KYB/KYC required. Limited to Ethereum.
Utopia Labs has launched USDC stablecoin bank transfers for businesses in an effort to accelerate crypto payment adoption. This new offering will allow entities from almost all over the world to send USDC to any U.S. bank account without needing to go through centralized exchanges.
Utopia said that the U.S. banking system has failed to support crypto organizations, and its solution addresses this shortfall head-on. Businesses that make, raise or send money in crypto can pay service providers, office rent, or “literally anyone who has a U.S. bank account” via USDC, according to the firm.
Businesses interested in using the service can apply by submitting their know-your-business (KYB) and know-your-customer (KYC) verification details to Utopia Labs, which says it can approve applications in under two business days. Once approved, businesses can start off-ramping USDC at a guaranteed 1:1 conversion rate with the U.S. dollar for a 0.3% fee. The USDC transfers are exclusive to the Ethereum blockchain with no limits and are compliant with ACH (automated clearing house) transfers, received in less than three business days, according to the firm.
While the service is available to most countries worldwide, companies in Cuba, North Korea, Iran, Syria, Belarus and Russia are not supported, Utopia added. Utopia’s roadmap includes providing off-ramping for any token, not just USDC, expanding to other blockchain networks, and introducing on-ramps to get fiat into crypto. Beyond crypto payments, Utopia Labs also offers treasury management for Safe (formerly Gnosis Safe) users, enabling token swaps with liquidity across more than 100 decentralized exchanges through its integration with 0x Protocol.
Utopia Labs raised $23 million in a 2022 Series A funding round led by Paradigm, with participation from Circle Ventures and Coinbase Ventures. The firm’s roadmap includes more offerings like off-ramping for any token, expanding to other blockchain networks, and introducing on-ramps to get fiat into crypto.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.