TL;DR
- Stop Using Exchanges: Send Crypto Straight to Your Bank Account Now
- Tether’s New Move Lets You Cash Out Crypto Without Selling First
- Goodbye Exchange Fees: This App Puts Crypto Directly in Your Bank
The app is called Oobit. It has backing from Tether, the company behind the USDT stablecoin. The new service lets people send supported cryptocurrencies from self-custody wallets. The money arrives in bank accounts through local payment networks.
In Europe, transfers use the Single Euro Payments Area, known as SEPA. In the United States, the system uses the Automated Clearing House, called ACH. In Mexico, it uses the Sistema de Pagos Electrónicos Interbancarios, or SPEI.
Oobit said the system sends transactions through local payment rails
Users can receive funds in US dollars, euros, Mexican pesos and Philippine pesos. The app supports several digital assets for sending. These include Bitcoin, Ethereum and a range of stablecoins such as Tether, USDC, EURC and EURR. Other supported tokens include XRP, BNB, Solana, Cardano and Dogecoin.
Unlike some payment providers that send users to outside websites to complete transfers, Oobit said the entire process happens inside its app. Users do not get redirected to an external company to convert their crypto to cash.
Oobit said its main difference from others is its focus on self-custody wallets. Users keep control of their own crypto until they decide to send it. The app acts as a bridge between assets on a blockchain and a regular bank account. Users do not need to move their funds to a centralized exchange first.
DTR recently agreed to be bought by Bakkt
Bakkt is a digital asset platform that went public in the United States. The Intercontinental Exchange, which also owns the New York Stock Exchange, started Bakkt in 2018.
Akshay Naheta is the founder of DTR and the chief executive of Bakkt. He said in a statement that building connections between digital asset platforms and traditional finance is important for more people to start using crypto.
Amram Adar is the co-founder and chief executive of Oobit. He told Cointelegraph that his company’s model differs from other off-ramp services in two ways. One is how custody works. The other is how the user moves through the transaction.
“The end-user relationship, wallet custody and transaction experience remain entirely within Oobit,” Adar said.
User funds start inside Oobit’s wallet system. When someone starts a bank transfer, the funds leave that wallet and go to DTR. DTR only handles the payout. It sends the money to the recipient’s bank account. It does not hold the funds for investing or any other purpose.
Oobit first converts the crypto to US dollars
Then it sends that dollar amount to DTR in the form of USDT stablecoins. DTR then exchanges the USDT into the local currency of the recipient. Finally, DTR sends that money to the bank account, Adar said.
Oobit has previously said it received financial backing from Tether. Tether is the largest stablecoin operator based on how many coins are in circulation. Adar said the service is live now in all countries where DTR operates. There are no test programs running in specific areas only. Dollar transfers can only happen inside the United States.
The minimum amount someone can send depends on where they are sending money. It ranges from about 10 euros, which is roughly $11.70, to about $100. The maximum amount is around $50,000. Oobit charges either a flat fee of $1 or a 1 percent transaction fee. It uses whichever amount is larger. The company also adds about 0.5 percent to the exchange rate when converting crypto to dollars.
DTR charges either a flat fee or a percentage
The flat fee ranges from about 65 cents to 2 euros, depending on the currency. The percentage fee ranges from about 0.65 percent to 1 percent.
Visa has started letting financial institutions use USDC stablecoins for settlements and payments. Crypto.com has used application programming interfaces from Circle, the company behind USDC, to support dollar transfers to and from USDC wallets.
On Monday, a company called Stablecore joined a network that connects financial technology firms with banks. Also on Monday, TRM Labs announced a partnership with Finray Technologies. The two companies will work together to help institutions monitor crypto and fiat transactions under Europe’s new Markets in Crypto-Assets regulation, known as MiCA.
