Harbour Teams with Velocity Labs to Launch Instant Stablecoin Payment Between EU Banks and Polkadot

The digital finance landscape is about to experience a significant transformation. Harbour, in collaboration with Velocity Labs, has introduced “Magic Ramp,” a new stablecoin payment system designed to streamline transactions between European banks and the Polkadot network. This game-changing development integrates traditional banking systems with Web3 technology, allowing users to send and receive payments in seconds with minimal fees.

Connecting Traditional Finance to Web3: The Magic Ramp Solution

In a move that bridges the gap between traditional finance and the rapidly growing world of blockchain, Harbour’s new payment solution promises to revolutionise how people interact with stablecoins. Magic Ramp, the product of Harbour’s partnership with Velocity Labs, is a stablecoin payment system that connects SEPA (Single Euro Payments Area) Instant payment rails with the Polkadot network. This allows Euros to be sent from any European bank account and received as USDC (a popular stablecoin) on-chain in under 30 seconds.

The integration of Polkadot’s blockchain with the SEPA Instant payment system is a significant achievement. It makes transferring funds between Web3 wallets and traditional banking systems incredibly fast and efficient. Whether you’re sending Euros from a bank account or receiving them in a Web3 wallet, the entire process is seamless, low-cost, and incredibly fast.

For the first six weeks following the launch, this service will be completely free. The partnership also offers developers the opportunity to issue virtual IBANs (International Bank Account Numbers) that are directly linked to Polkadot wallet addresses, making it easier than ever to bridge traditional banking systems with Web3.

What Magic Ramp Means for the Future of Payments

The introduction of Magic Ramp could have wide-reaching implications for a variety of sectors. One of the most significant is the way stablecoins will be used for day-to-day transactions. Traditional finance systems have long struggled with the speed and cost of cross-border transactions, but with Magic Ramp, users can transfer funds internationally in seconds, with fees that are so low they barely register.

“Polkadot’s infrastructure enables instant, low-cost stablecoin transfers, which aligns with our goal of making blockchain interoperable with traditional banking,” said James Brownlee, CEO of Harbour. His words highlight the vision behind Magic Ramp – making stablecoin transactions just as easy as sending money through conventional banking channels.

Moreover, this partnership is expected to open new avenues for developers working on stablecoin-based solutions. With an easy-to-use on-ramp into the Polkadot ecosystem, developers can now build new financial tools and products that leverage the power of blockchain while maintaining the ease and reliability of traditional banking.

Magic Ramp: Potential Use Cases Across Sectors

The potential applications of Magic Ramp are vast. For businesses, the ability to accept stablecoin payments could simplify cross-border transactions, reducing the need for costly intermediaries or lengthy processing times. Merchants could now receive payments in Euros, even if their customers are using digital currencies like USDC.

The service also opens up new possibilities for users in the Web3 space. With the integration of SEPA Instant payment rails, Web3 users can easily exchange their stablecoins for fiat money, or vice versa, with a level of speed and convenience that has never been possible before. This means that Web3 can become even more accessible to the general public, without the need to rely on third-party exchanges or centralized platforms.

Other use cases include:

• International Payroll: Companies can now pay their global employees in a much more cost-effective and timely manner.
• Bill Payments: Users can pay their bills using stablecoins, bypassing traditional payment channels and eliminating delays.
• Cross-border Remittances: Magic Ramp makes sending money across borders not only faster but also cheaper, offering an alternative to high-fee international transfers.

This range of possibilities means that Magic Ramp could become a crucial tool for businesses, developers, and consumers alike.

Why Harbour and Velocity Labs Chose to Partner

The decision to team up with Velocity Labs was a strategic one for Harbour. Nicolas Arevalo, CEO of Velocity Labs, explains, “Among all the on-ramp providers we’ve worked with, Harbour stood out by blending the convenience of on-ramps with the speed and cost of CEX on-ramping. This will allow stablecoins in Polkadot to become seamlessly accessible with negligible fees.”

Velocity Labs is a key player in the Polkadot ecosystem, and its involvement adds significant weight to the partnership. As a core contributor to Polkadot, Velocity Labs brings a deep understanding of how blockchain networks can interact with the traditional financial system. This makes them an ideal partner for Harbour as they work to make Polkadot a more accessible and user-friendly platform for stablecoin transactions.

This collaboration has the potential to accelerate Polkadot’s growth in the DeFi (Decentralised Finance) space, making it easier for developers and infrastructure providers to build on the network. For Harbour, this partnership not only expands the use cases for its Magic Ramp solution but also positions it at the forefront of a new wave of payment innovation.

The Future of Stablecoin Payments

With Magic Ramp, Harbour and Velocity Labs are setting the stage for a new era in digital payments. By making it easier than ever to move funds between traditional banking systems and blockchain networks, they are creating a seamless bridge between Web3 and the legacy finance world.

As the demand for faster, cheaper, and more efficient payment systems grows, innovations like Magic Ramp are likely to become more commonplace. This partnership represents just the beginning of what could be a significant shift in how we think about and use money in the digital age.