Tether-backed Oobit adds crypto-to-bank transfers
Crypto payment provider Oobit has launched crypto-to-bank transfers to bank accounts via local payment rails, expanding its app beyond in-store spending and peer-to-peer (P2P) transfers.
In an announcement shared with Cointelegraph, Obit will allow users to send supported digital assets from self-managed wallets and transfer funds to bank accounts in Europe's Single Euro Payment Area (SEPA), including Automated Clearing House (ACH) in the United States and Mexico's Sistema de Pagos Electronicos Interbankarios (SPEI).
Settlement currencies include the US dollar, Euro, Mexican peso, and Philippine peso, while backed assets include Bitcoin (BTC), Ether (ETH), and stablecoins such as Tether (USDT), USDC (USDC), EURC, and EURR.
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Oobit says users can see the amount of crypto leaving their wallet and the fiat equivalent arriving in the recipient's account before confirming the transactions.
He said the system would channel transactions through domestic payment rails instead of traditional correspondent banking channels.
Unlike checkout-based providers that redirect users to third-party interfaces, Obit notes that the transfer flow is embedded natively within the app, without redirecting users to an external on-ramp provider.
Crypto off-ramps heating
The release highlights growing competition in crypto off-ramping, where exchanges and fintech companies allow users to convert digital assets into fiat deposits.
What makes Oobit unique is its focus on linking onchain assets to bank accounts by placing the app as a payment layer without requiring the user to hold funds through a centralized exchange.
DTR binding and Bakkt recovery
Oobit says the feature is powered by its Distributed Technologies Research (DTR) infrastructure, which connects Oobit's wallet interface to local payment networks.
DTR recently entered into an agreement to acquire Bakht, a US-listed digital asset that launched on the Intercontinental Exchange (ISA) in 2018.
Akshay Naheta, founder and CEO of Bakht DTR, said in the release that the infrastructure that connects digital asset platforms with traditional financial systems is the “foundation for wider adoption”.
Amram Adar, co-founder and CEO of Oobit, told Cointelegraph that the company's model differs from traditional ramp providers in terms of retention structure and user flow. “The end-user interface, wallet management and transaction experience will remain entirely within Oobit,” Adar said.
According to Adar, user funds will initially be held in Oobit's wallet infrastructure. When bank transfer is initiated, funds are deducted and transferred strictly to DTR for payment execution. DTR transfers the funds to the recipient's bank account and does not hold funds for investment or discretionary purposes.
Oobit performs the initial crypto-to-USD conversion, after which the USD equivalent is transferred in USDT to DTR. DTR then converts the foreign currency into domestic fiat currency before depositing it into the designated bank account, Adar said.
Oobit previously revealed support for USDT provider Tether, linking its app to the largest stablecoin operator by market capitalization.
Related: Bybit to open retail bank accounts with personal IBANs in February
Fees, restrictions and infrastructure expansion
According to Adar, the service is fully live in all countries supported by DTR and currently there is no pilot corridor. US dollar transfers are limited to domestic US flows.
Minimum transfer amounts range from 10 euros ($11.70) to $100 equivalents, depending on the link, while maximum limits can reach up to $50,000 equivalents.
Total fees consist of parts payable by both Oobit and DTR. Oobit currently applies a fixed fee of $1 or a 1% transaction fee, with an estimated 0.5% on crypto-to-USD conversions.
DTR applies to a fixed fee, generally between 0.65 cents and 2 euros depending on the currency, or a percentage-based fee of 0.65% to 1%, according to the company.
The merger comes as banks and fintech companies ramp up efforts to integrate blockchain-based assets into integrated payment systems.
Major payments players such as Visa have rolled out USDC-based settlement and stablecoin payments to financial institutions, and Crypto.com has used Circle's application programming interfaces (API) to support Dollar Bank to USDC wallet transfers.
On Monday, digital asset infrastructure company Stablecore joined the Jack Henry FinTech Integration Network, enabling more than 1,600 US banks and credit unions to add stablecoin services to major banking platforms.
On the same day, TRM Labs announced that it has partnered with FinRay Technologies to unify crypto and fiat transaction monitoring for institutions operating under the Crypto-Assets (MiCA) regulation in European markets.
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