Ethereum scaling solution Immutable X will allow users to receive U.S. dollars in their bank accounts on ether withdrawals, developers said this week.
The ether offramp is available to any developer building on Immutable. Developers can enable their users to sell the layer 2-based ether and have the proceeds deposited directly to their bank accounts.
Decentralized layer 2 solutions like Immutable X enable faster, cheaper, and more energy-efficient transactions than the Ethereum mainnet. As per developer documents, Immutable can process over 9,000 transactions per second (tps), while the Ethereum network averages 10.54 tps as of Thursday morning.
This is one of the first instances of a layer 2 application allowing users to directly withdraw ether holdings to U.S. dollars. The fiat transactions are processed via crypto payments firm Moonpay.
The withdrawal service is currently available only in the European Union, the UK, and select U.S. states.
Immutable founder Robbie Ferguson told CoinDesk that the service comes at a time when the crypto community faces troubles from centralized crypto lenders.
“Centralized products failing over the past 6 months have made painstakingly clear the importance of decentralized ownership,” Ferguson said in a Twitter message. “Now anyone can take their ETH and receive USD in their bank accounts.”
Withdrawals on popular, but centralized, crypto lending products, such as Celsius, remain paused as the crypto market saw contagion risk in June stemming from the collapse of terraUSD (UST) in mid-May and crypto fund Three Arrows in June.