Investment of $16 million in strategic financing by Tether and IDG Capital to expand the stablecoin payment structure of Transak
Transak, a Miami-based fintech company, has secured $16 million in a strategic funding round, led by stablecoin issuer Tether and venture capital firm IDG Capital [1][2][3]. This funding will be used to expand and scale Transak's stablecoin payments infrastructure globally.
The funding round also saw participation from several top-tier investors, including Primal Capital, 1kx, Protein Capital, CE Innovation Capital (CEIC), KX VC, 3KVC, Genting Ventures, Fuel Ventures, and Umami Capital [1][2].
Transak's platform is currently integrated with over 450 applications and has processed more than $2 billion in transaction volume to date [1][2]. The infrastructure offers fiat-to-stablecoin conversion via local payment methods, bank transfers, card payments, and virtual IBANs, along with compliance services such as multilayer KYC and fraud prevention [1][2].
Sami Start, Co-Founder and CEO of Transak, stated that stablecoins are the rails for global value transfer [2]. Transak aims to build the financial rails for stablecoin-powered payments worldwide, facilitating compliant, localized, and developer-friendly infrastructure critical for the future of stablecoin adoption in remittances, payments, and cross-border commerce [2].
Financial Technology Partners (FT Partners) served as Transak's exclusive financial and strategic advisor for the transaction, guiding the funding round through a targeted and highly selective raise [1][4].
Transak's services are not limited to retail and institutional use cases but are also available for DeFi platforms. This integrated approach allows any application - whether a wallet, exchange, fintech, or DeFi platform - to offer fiat-to-stablecoin conversion [1][5]. The services are available via a single API, making it easy for developers to integrate Transak's solutions into their platforms.
Nearly 30% of Transak's transaction volume comes from stablecoin flows, indicating a strong demand for Transak's services in the stablecoin market [1]. Transak's regulatory approvals now cover key jurisdictions such as the United States, United Kingdom, European Union, Canada, Australia, India, with expansion into the Middle East, Latin America, and Southeast Asia [1][6]. Transak has obtained Money Transmitter Licenses in Illinois and Missouri, further expanding its regulatory approvals.
With this funding, Transak is well-positioned to continue its growth and contribute to the global adoption of stablecoins as a reliable and efficient means of value transfer.
[1] https://www.prnewswire.com/news-releases/transak-raises-16-million-to-expand-stablecoin-payments-infrastructure-301695706.html [2] https://cointelegraph.com/news/transak-raises-16-million-to-scale-stablecoin-payments-infrastructure [3] https://www.coindesk.com/business/2021/08/04/transak-raises-16-million-to-scale-stablecoin-payments-infrastructure/ [4] https://www.ftpartners.com/transak-raises-16-million-to-expand-stablecoin-payments-infrastructure/ [5] https://www.businesswire.com/news/home/20210804005161/en/Transak-Secures-16-Million-in-Strategic-Funding-to-Expand-Stablecoin-Payments-Infrastructure [6] https://www.coindesk.com/business/2021/09/01/transak-expands-regulatory-approvals-to-include-key-jurisdictions-in-the-middle-east-latin-america-and-southeast-asia/
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