Instabridge

Instabridge is a regulated cross-chain bridge service that enables the transfer of digital assets between the Ethereum and Radix blockchain networks. Initially developed as a one-way bridge for converting eXRD tokens to XRD, it has evolved into a comprehensive two-way wrapping service that supports multiple cryptocurrencies and digital assets.

Overview

Instabridge operates as a Virtual Asset Service Provider (VASP) and requires users to complete Know Your Customer (KYC) verification through its integrated Instapass identity verification system. This regulatory compliance framework enables Instabridge to facilitate secure and compliant cross-chain transactions while maintaining user privacy and security standards.

Instabridge's core functionality includes the ability to wrap various ERC-20 tokens from the Ethereum network into their equivalent "x-assets" on the Radix network at a 1:1 ratio, minus applicable fees. The platform integrates with popular wallet services, requiring the Metamask browser extension for Ethereum transactions and the Radix Wallet for Radix network operations.

As of December 2024, Instabridge has processed over $100,000 in bridged assets including wrapped versions of major cryptocurrencies such as Bitcoin (xBTC), Ripple (xXRP), and Cardano (xADA). The platform employs a transaction status tracking system that provides users with real-time updates on their cross-chain transfers, including statuses such as "In Flight," "Completed," "Refunded," and "Failed."

Recent platform upgrades have significantly improved transaction processing speeds and reduced fees, with transactions into the Radix network becoming free of charge and outbound transactions incurring a fee of 15 basis points, capped at $500. The service has also expanded its token support to include 20 additional cryptocurrencies, with plans to introduce retail functionality for these new assets in phases during Q1 2025.

History

Instabridge was developed by Metapass (Radix) Ltd. as a solution for bridging assets between the Ethereum and Radix blockchain networks. The service was initially launched as a one-way bridge specifically designed to enable users to convert eXRD tokens to XRD at a 1:1 ratio.

Following its initial release, the platform expanded its capabilities to become a two-way wrapping service, allowing users to bridge various digital assets between the two networks. This evolution included support for major cryptocurrencies such as ETH, wBTC, USDT, and USDC, with all conversions maintaining a 1:1 ratio minus applicable fees.

In December 2024, Instabridge underwent significant upgrades that transformed its operational capabilities. These improvements included a 5x increase in transaction processing speed and a substantial reduction in delayed transactions. The platform also implemented a new fee structure, eliminating charges for transactions into the Radix network and reducing fees for outbound transactions to 15 basis points.

The platform achieved a notable milestone in December 2024 when it surpassed $100,000 in bridged assets for various x-assets on the Radix network, including wrapped versions of Bitcoin, Ripple, Cardano, Bitcoin Cash, Stellar, and Ethereum. This achievement marked significant progress in establishing liquidity for these assets on the Radix network.

The expansion continued with the announcement of support for 20 additional tokens, including popular assets such as BNB, XRP, ADA, TRX, AVAX, XLM, and AAVE. These new additions were initially made available exclusively to business users, with plans for phased retail access implementation during Q1 2025, coinciding with the anticipated launch of the Anthic ecosystem.

Features

Instabridge's primary feature is its token wrapping and unwrapping capability, which enables users to convert between ERC-20 tokens and their Radix network equivalents. The platform designates wrapped assets on the Radix network with an "x" prefix, maintaining a 1:1 conversion ratio for all supported tokens.

The platform integrates with multiple wallet systems, requiring users to have both the Radix Wallet app and the Metamask browser extension for full functionality. Users can manage multiple wallet addresses through their Instapass account, with the ability to set default addresses for both networks.

The platform implements strict security measures through its mandatory KYC verification system via Instapass, which requires users to complete identity verification before accessing bridging services. This system includes AML (Anti-Money Laundering) tiers that determine transaction limits, with users able to apply for tier upgrades to increase their trading capacity.

As of December 2024, the service has enhanced its performance metrics with a fivefold increase in transaction speed and significant reductions in processing delays. The platform maintains support for a growing list of digital assets, including major cryptocurrencies and stablecoins, with regular additions to its supported token list.

Technical Architecture

Instabridge's technical infrastructure is built around secure wallet integrations and automated transaction processing systems. The platform requires the Metamask browser extension for Ethereum-based operations, using it to facilitate secure login authentication and transaction signing. For Radix network interactions, users must install the Radix Wallet Connector browser extension and mobile app.

The platform implements a QR code-based wallet linking system that enables secure connection between users' browser sessions and mobile wallet applications. This system allows users to verify and manage multiple wallet addresses while maintaining security through cryptographic signing processes.

Transaction processing is handled through a multi-stage system that monitors and verifies transfers across both networks. The architecture includes automated refund mechanisms for failed transactions, with funds being returned to their originating addresses when issues occur.

The platform's identity verification architecture is integrated with Instapass, which manages KYC verification and AML compliance. This integration enables automatic wallet address verification and ensures regulatory compliance across all transactions.

Recent technical improvements have resulted in significant performance enhancements, including optimizations that reduce transaction delays and improve processing speeds. The system architecture supports the platform's expanding token list while maintaining consistent 1:1 conversion ratios for all supported assets.

Fees and Processing

Instabridge employs a tiered fee structure based on transaction type and direction. The platform charges a 0.25% flat processing fee for all transactions, with an exception for eXRD to XRD conversions. Following platform upgrades in December 2024, the fee structure was revised to eliminate fees for transactions into the Radix network, while outbound transactions incur a fee of 15 basis points, capped at $500.

For Ethereum-originated transactions, users must maintain sufficient ETH in their accounts to cover Ethereum gas fees. Similarly, Radix-originated transactions require XRD for network fees, which are processed through the user's Radix Wallet. When unwrapping tokens from Radix to Ethereum, gas fees are deducted from the final ERC-20 token amount received.

The platform's processing system has been optimized for speed and efficiency. Recent upgrades have achieved a fivefold increase in transaction speed while significantly reducing the frequency of delayed transactions. The transaction monitoring system tracks all transfers in real-time, with status updates typically resolving within one business day.

Processing limits are determined by user AML tiers, with higher tiers allowing for larger transaction volumes. Users can request tier upgrades through the Instapass system to increase their transaction limits.

Regulatory Compliance

Instabridge operates as a regulated Virtual Asset Service Provider (VASP), implementing comprehensive compliance measures through its integrated identity verification system. Users must complete KYC verification through Instapass before accessing the platform's services, ensuring compliance with international regulations.

The platform employs a tiered AML system that determines transaction limits based on user verification levels. Users connecting to Instabridge for the first time must agree to terms and conditions and consent to personal data sharing for KYC and AML verification purposes.

Transaction monitoring includes automatic compliance checks that prevent transfers exceeding user AML tier limits. The system automatically blocks transactions that would exceed these limits, requiring users to upgrade their AML tier through Instapass before proceeding with larger transfers.

For institutional users, Instabridge maintains additional compliance measures, including exclusive access to certain token pairs. The platform's expansion of supported assets includes phased implementation approaches that prioritize regulatory compliance while gradually extending access to retail users.

Integration with Anthic

Instabridge serves as a foundational infrastructure component for the Anthic platform, an upcoming decentralized finance (DeFi) service. The integration aims to enable real-time trading with low slippage by leveraging Instabridge's cross-chain liquidity capabilities.

The platform's expansion of supported tokens is strategically aligned with Anthic's planned launch in Q1 2025. This expansion includes the addition of various digital assets, including stablecoins, memecoins, and alternative Layer 1 tokens, designed to create diverse liquidity options for the Anthic ecosystem.

The integration is intended to combine centralized exchange efficiency with decentralized trading capabilities, utilizing Instabridge's streamlined asset bridging system to facilitate rapid and cost-effective transactions within the Anthic platform.