tl;dr Summary: Ethereum scaling solution Immutable X will now provide the functionality to withdraw ETH tokens directly to their bank accounts.
Immutable X, a scaling solution built using StarkWare’s Zero-knowledge Rollup technology, recently announced that the latest version of their software development kit (SDK) will now include a crypto-to-fiat-off-ramp procedure.
This ability will be available to any developer building on Immutable X. Developers can now give their users the option to sell layer 2-based ether and have the money deposited into their bank accounts.
Unlike the Ethereum mainnet, decentralized layer-2 solutions like Immutable X allow faster, less expensive, and more energy-efficient transactions. According to developer docs, immutable can execute more than 9,000 transactions per second (TPS). In contrast, the Ethereum network averages 10.54 TPS currently.
“Every game, marketplace and app building on @immutable just got fiat offramps. One more step to mainstream,” said Immutable co-founder Robbie Ferguson in his Twitter post.
Moonpay, a financial technology firm that develops payment infrastructure for cryptocurrencies, will power this new functionality of Immutable X.
This system looks to be one of the first examples of a layer-2 application, or subsidiary blockchain, that enables users to withdraw their ether holdings in full and convert them to dollars.
The new feature comes with some restrictions. The service is only available in the EU, U.K., and a few U.S. jurisdictions. The minimum withdrawal value is presently 0.015 ETH. Users must also satisfy Moonpay’s anti-money laundering and know-your-customer verification processes before using the ETH offramp.
Moonpay will take a 1% processing fee and a dynamic network fee for BTC, ETH, and ERC 20 tokens.
This launch comes at a time when the crypto community is struggling with withdrawals paused on centralized crypto lenders like Celsius, Block-Fi, and others. Hopefully, this will provide a more reliable platform for fiat off-ramps.
