Usual, the decentralized stablecoin protocol introduced dedicated Virtual IBANs for each user to send/receive euros directly without using a crypto exchange. By teaming up with Monerium, a regulated Electronic Money Institution (EMI), Usual created a seamless on/off ramp for EUR0 (Usual’s euro-denominated stablecoin backed by European sovereign bonds).
How Virtual IBANs Simplify Euro Transactions
Users can now deposit euros by sending standard Single Euro Payments Area (SEPA) or SEPA Instant transfers from their bank accounts to their Usual assigned virtual International Bank Account Number (IBAN); their EUR0 balance will instantly update to reflect the amount deposited. Users will be able to withdraw both by being able to convert their EUR0 back to euros and having the funds sent back into their bank account via a SEPA transfer. This process eliminates the need for any intermediate tokens or exchange accounts, as well as third-party platforms. All identity verification [Know Your Customer (KYC)] will be done within the Usual App.
This infrastructure is powered by Monerium, which holds the first e-money license granted by Iceland’s Financial Supervisory Authority (FME) for blockchain based operations in 2019. Monerium is also fully Markets in Crypto-Assets Regulation (MiCA) compliant throughout the European Economic Area (EEA).
Importance of DeFi Accessibility
The use of virtual IBANs has effectively resolved the largest impediment to transferring euros in and out of decentralized finance (DeFi). Real-time payment capabilities (SEPA Instant) allow for instant settlements and transfers of funds between 36 European countries (including Switzerland and the UK). This development also establishes EUR0 as a legitimate extra alternative to using traditional banking systems, with Usual currently having approximately USD 114 million in total value locked (TVL).
