Transak has raised $16 million to expand and scale its stablecoin payment services. Tether and IDG Capital co-led the funding round, the fiat-to-crypto platform said in an announcement shared on Tuesday, August 12.
Headquartered in Miami, Florida, Transak lets users purchase and sell crypto assets using multiple payment methods. It also lets users convert traditional currencies and digital assets.
“Stablecoins are now the rails for global value transfer,” Sami Start, the co-founder and CEO of Transak said in a statement. “But making them usable at scale requires more than just liquidity. It takes real infrastructure: compliance systems, KYC, fraud prevention, banking partnerships, and deep crypto market knowledge.”
As part of its operational roadmap for this year, Transak plans on creating a compliant, localized, and developer-friendly infrastructure to drive the usecases and adoption of stablecoins.
Tether, the issuer of the USDT stablecoin, invested in Transak to help build the essential infrastructure needed for the broader stablecoin ecosystem to upgrade.
Commenting on the funding, Tether CEO Paolo Ardonio said, “Stablecoins are rapidly becoming the backbone of digital payments, offering stability and efficiency that traditional systems often lack. Transak is accelerating adoption across both emerging and developed markets, bridging gaps in financial access, and enabling new opportunities for businesses and consumers alike.”
Also read: Tether and Adecoagro sign MOU focused on Bitcoin mining
As of now, exact details on the amounts invested by Tether and IDG Capital remain undisclosed.
Meanwhile, other investors who participated in Transak’s funding round include Primal Capital, 1kx, Protein Capital, CEiC, KX VC, 3KVC, Genting Ventures, Fuel Ventures, and Umami Capital.