Uniswap has announced a partnership with fintech firm Moonpay to enable users to purchase cryptocurrency on its web app using debit cards, credit cards, and bank transfers.
The new service aims to address a deep-rooted issue for decentralized exchange protocols that do not support fiat pairs. However, their centralized counterparts do.
- As part of the deal, Uniswap has enabled fiat-to-crypto conversions on the Ethereum mainnet, Polygon, Optimism, and Artibrum.
- The feature will initially support Dai, Ether, USDC, USDT, Wrapped Bitcoin (wBTC), and Wrapped Ether (wETH) but will vary depending on the region, according to the official announcement.
- Uniswap further revealed that major payment methods, such as cards and bank transfers, are supported but will vary depending on the region. Currently, bank transfers are only available for most of the US, Brazil, SEPA, and the UK.
- The new service claims to have “no spread fees on USDC, lowest processing fees in the market, and instant access,” designed to tackle one of the major barriers to DeFi adoption.
- The exact terms and timeline of the launch were not disclosed.
- Uniswap’s announcement comes amidst a rapid surge in DEX user activity following the high-profile blow-up of the centralized crypto exchange, FTX.
- Messari’s recent report observed an increased user migration to Uniswap after the fact. The launch of its NFT aggregator on service also contributed to the growth in its user activity on the platform.