Debit, Credit, and Bank Accounts are to Be Accepted on Uniswap
The creators of the decentralized cryptocurrency exchange Uniswap have reached an agreement with MoonPay to connect DeFi and fiat currencies.
The cooperation enables Uniswap customers to purchase digital assets using a bank account or a compatible credit or debit card, the firms said on Tuesday.
The agreement aims to tackle a long-standing problem for DEX users: peer-to-peer blockchain systems do not handle fiat pairings. Centralized exchanges, like Coinbase and Kraken, provide this function.
MoonPay, a digital assets infrastructure and payments processor, manages the back end of the arrangement, which enables clients in over 160 countries to acquire cryptocurrencies through direct bank transfers and credit cards.
The terms of the agreement and the precise rollout schedule were not revealed. In a statement, Uniswap executives described their pricing as “the lowest processing fees on the market” and “the best rates in [Web3].” According to a spokeswoman, the DEX has no plans to take a part of the margin on USDC transactions, although processing fees do apply. The latter is normally between 1% and 3%, depending on the payment method.
Following FTX’s liquidity constraint and subsequent collapse, institutional and retail crypto traders have recently reexamined the potential — and viability — of protecting crypto on exchanges. And the concept looks to be part of the partnership’s marketing push.
The chief operating officer of Uniswap Labs, MC Lader, told Blockworks, “User experience has been a big barrier to the adoption of decentralised technology. Improving this is a top focus for Uniswap.” Users retain control of their funds.
“The more that users can accomplish independently and on decentralized rails, the better and safer their experience will be,” said Lader in a statement.
Included among the supported blockchains are Arbitrum, the Ethereum mainnet, Optimism, and Polygon. At launch, the tokens supported include DAI, ETH, MATIC, USDC, USDT, WBTC, and WETH. Typically, the minimum purchase amount is the local currency equivalent of $15.