Quick take:
- Transak plans to use the fresh capital to expand its stablecoin payments offerings and enter new markets.
- Transak says it already holds operating licenses in the U.S. (FinCEN), the U.K. (FCA), the EU (VASP), Canada (FINTRAC), Australia (AUSTRAC), and India (FIU-IND).
- The announcement comes amid the rapid adoption of stablecoins following the signing into law of the stablecoin-focused bill, the GENIUS Act.
Transak, the crypto payments infrastructure provider, has raised $16 million in a strategic funding round co-led by Tether and IDG Capital. The Fundraising also attracted participation from Primal Capital, 1kx, Protein Capital, and Fuel Ventures, CoinDesk reported.
The company plans to use the fresh capital to scale its stablecoin payments network and expand into new markets. According to the announcement, the company already has licenses from multiple jurisdictions, including the U.S. (FinCEN), the U.K. (FCA), the EU (VASP), Canada (FINTRAC), Australia (AUSTRAC), and India (FIU-IND).
This announcement comes at a time when the stablecoin payments market is rapidly growing after expanding from about $130 billion in early 2024 to about $270 billion. The USDT stablecoin, issued by Tether, one of the co-lead investors in Transak’s strategic funding round, continues to dominate the industry with about 60% of the total market capitalisation.
The announcement also comes hot on the heels of President Trump signing into law the stablecoin-focused bill, the GENIUS Act, which provides a clear framework for the regulation of cryptocurrencies pegged to fiat currencies and how banks can integrate digital currencies into their systems.
Transak claims that about 30% of its $2 billion processed payments originate from stablecoin flows, and is now looking to boost those levels.
Commenting on the announcement, Transak CEO and co-founder Sami Start said: “Stablecoins are no longer just a crypto asset. They are now the rails for global value transfer,” adding that making them usable at scale requires more than just liquidity.
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