Oobit Introduces Direct Bank Transfers via Domestic Payment Systems with Tether Support
With financial backing from Tether, the cryptocurrency payment application is broadening its services beyond point-of-sale transactions by incorporating wallet-integrated withdrawal options to local banking infrastructure.
Digital currency payment service Oobit has introduced a new feature enabling crypto-to-bank transfers that finalize into traditional bank accounts through domestic payment infrastructure, thereby extending the application's functionality beyond brick-and-mortar purchases and peer-to-peer (P2P) transactions.
Through a statement provided to Cointelegraph, Oobit revealed that customers can now transmit compatible cryptocurrency holdings from self-custody wallet solutions and receive fiat deposits into traditional banking accounts via payment networks such as Europe's Single Euro Payments Area (SEPA), the United States' Automated Clearing House (ACH), and Mexico's Sistema de Pagos Electrónicos Interbancarios (SPEI).
The fiat currencies available for settlement encompass US dollars, euros, Mexican pesos and Philippine pesos, while the digital assets compatible with the service include Bitcoin (BTC), Ether (ETH) and multiple stablecoins such as Tether (USDT), USDC (USDC), EURC and EURR, in addition to other cryptocurrencies including XRP (XRP), BNB (BNB), Solana (SOL), Cardano (ADA) and Dogecoin (DOGE).
According to Oobit, customers have the ability to preview both the cryptocurrency quantity being withdrawn from their wallet and the corresponding fiat amount that will be credited to the beneficiary's bank account prior to authorizing the transfers.
The company characterized the infrastructure as channeling transactions via domestic payment networks rather than utilizing conventional correspondent banking pathways.
In contrast to checkout-oriented service providers that send customers to third-party user interfaces, Oobit explained that the transaction process remains integrated natively within its application, eliminating the need to redirect customers to an external off-ramp service provider.
Crypto off-ramps heating up
This product launch underscores the intensifying rivalry in the cryptocurrency off-ramping sector, where digital currency exchanges and financial technology enterprises enable customers to transform digital holdings into traditional currency deposits.
The distinctive feature Oobit emphasizes is its concentration on self-custody wallet solutions, framing the application as a payment infrastructure layer that bridges onchain holdings to traditional bank accounts without mandating that customers maintain assets on a centralized exchange platform.
DTR tie-up and Bakkt acquisition
According to Oobit, the new functionality is supported by technology infrastructure provided by Distributed Technologies Research (DTR), which establishes connectivity between Oobit's wallet platform and local payment network systems.
DTR has recently finalized an agreement to be purchased by Bakkt, a publicly-traded digital asset company in the United States that was established by the Intercontinental Exchange (ICE) in 2018.
In the announcement, Akshay Naheta, who founded DTR and serves as CEO of Bakkt, stated that the infrastructure linking digital asset services with conventional financial infrastructure was "foundational to broader adoption."
In conversation with Cointelegraph, Amram Adar, who co-founded Oobit and serves as its CEO, explained that the company's approach diverges from conventional off-ramp service providers regarding both the custody framework and the customer journey. "The end-user relationship, wallet custody and transaction experience remain entirely within Oobit," Adar said.
As Adar detailed, customer assets are originally maintained within Oobit's wallet system. Upon initiating a bank transfer request, the funds are debited and conveyed to DTR exclusively for the purpose of payout processing. DTR subsequently routes the funds to the destination bank account and refrains from holding funds for investment activities or discretionary applications.
The initial cryptocurrency-to-USD conversion is conducted by Oobit, following which the USD-equivalent amount is transmitted in USDT to DTR. Subsequently, DTR performs the foreign exchange conversion into the local fiat currency prior to final settlement into the specified bank account, Adar said.
Oobit has formerly announced financial support from Tether, the organization behind USDT, establishing a connection between the application and the leading stablecoin provider by market capitalization.
Fees, limits and expanding infrastructure
According to Adar, the offering is currently operational across all nations where DTR provides coverage, without any experimental corridors presently being tested. Transfers denominated in US dollars are restricted to transactions within the United States.
The minimum transfer thresholds vary from approximately 10 euro ($11.70) to $100 equivalent, based on the specific corridor, whereas maximum transaction limits can extend to roughly a $50,000 equivalent.
The comprehensive fee structure incorporates elements assessed by both Oobit and DTR. Oobit charges whichever is higher between a fixed fee, presently planned at $1, or a 1% transaction fee, in addition to an approximate 0.5% spread applied to crypto-to-USD conversions.
DTR levies either a fixed fee, typically ranging from approximately 0.65 cents to 2 euro based on the currency denomination, or a percentage-based charge varying from roughly 0.65% to 1%, as stated by the company.
This partnership emerges as traditional banks and financial technology companies intensify initiatives to incorporate blockchain-based digital assets into compliant payment infrastructure.
Leading payment industry participants such as Visa have introduced USDC-based settlement mechanisms and stablecoin distribution options for financial institutions, while Crypto.com has leveraged Circle's application programming interfaces (APIs) to facilitate dollar bank transfers connecting to and from USDC wallets.
Earlier this week, Stablecore, a digital asset infrastructure provider, became part of the Jack Henry Fintech Integration Network, providing access for more than 1,600 US banks and credit unions to integrate stablecoin capabilities through their existing core banking systems.
That same day, TRM Labs revealed a collaborative agreement with Finray Technologies designed to consolidate cryptocurrency and fiat transaction oversight for institutions subject to Europe's Markets in Crypto-Assets (MiCA) regulation.