Cryptocurrency Transaction Infrastructure Service Transak Garners $16 Million in Investments from Tether, IDG Capital, and Other Backers
Transak, a prominent crypto payments infrastructure provider, has announced its plans to expand its stablecoin payments offerings and enter new markets following a strategic funding round led by IDG Capital and Tether. The $16 million raised will be used to scale Transak's stablecoin payment infrastructure, enhance compliance systems, and grow its operations globally.
Growing Stablecoin Transactions
Stablecoins already account for nearly 30% of Transak’s over $2 billion in processed transaction volume, highlighting their increasing role in payments. The company aims to further increase this percentage as it expands into new markets.
Market Expansion Focus
Transak is particularly keen on broadening its presence in Latin America, Southeast Asia, and the Middle East. Leveraging its regulatory licenses across six jurisdictions, including the US, UK, EU, Canada, Australia, and India, Transak aims to provide compliant, cross-border stablecoin solutions.
Infrastructure Improvements
To facilitate stablecoin adoption globally, Transak will focus on enhancing its fiat-to-stablecoin stack. This includes improving compliance systems, KYC, fraud prevention, banking partnerships, and developing developer-friendly tools.
Strategic Partnerships
Tether’s investment in Transak is strategic, given that USDT, the stablecoin issued by Tether, dominates the industry with over 60% of the total market capitalisation. This partnership will support Transak’s goal to tightly integrate stablecoins into traditional financial systems.
Regulatory Landscape
The recent signing of the GENIUS Act into law by President Trump provides a clear framework for the regulation of cryptocurrencies pegged to fiat currencies. This regulatory environment will undoubtedly aid Transak in its expansion efforts.
Transak’s Platform
Transak’s platform currently serves over 450 applications, offering fiat-to-crypto on/off ramps, virtual bank accounts, real-time liquidity routing, multi-level KYC solutions, and checkout options enabling NFT purchases with fiat. This positions Transak as a critical payment infrastructure provider in the Web3 space.
In conclusion, through this recent funding, Transak is accelerating its expansion of stablecoin payments infrastructure and entering emerging markets with a strong compliance-led, developer-focused approach backed by significant industry partners like Tether and IDG Capital.
Transak's expansion plans include entering new markets, particularly Latin America, Southeast Asia, and the Middle East, with a focus on leveraging its regulatory licenses to provide compliant, cross-border stablecoin solutions. To facilitate global adoption of stablecoins, Transak aims to improve its fiat-to-stablecoin stack, enhancing compliance systems, KYC, fraud prevention, banking partnerships, and developing developer-friendly tools. This strategic funding round, led by IDG Capital and Tether, will support Transak's goal to closely integrate stablecoins into traditional financial systems.
