- Transak is focusing on modular, white-label stablecoin solutions for established firms.
- Stablecoin use may become seamless and less visible to end users.
- The company supports flexible “stablecoin sandwich” processes involving regulatory compliance and cash conversion.
- Stablecoins backed by assets like U.S. Treasuries are gaining legitimacy and institutional interest.
- Major payment firms, including Western Union, plan to launch stablecoin products soon.
Transak, a crypto payments infrastructure provider supported by Tether, is developing more adaptable stablecoin products aimed at established financial services firms. The company’s CEO, Sami Start, says they are offering modular, white-labeled application programming interfaces (APIs) that allow integration of stablecoins into existing services without prominently displaying the Transak brand. This approach aims to support onramps into financial applications beyond traditional crypto buying.
Having raised $40 million in funding, Transak is targeting the next phase of stablecoin adoption, where users may not even realize they are transacting with stablecoins. Start mentioned that some applications, such as Paypal‘s Venmo, could integrate stablecoin balances directly with traditional account balances, making stablecoin use less distinct to customers.
Stablecoins are digital tokens usually pegged to stable assets like the U.S. dollar, providing a consistent value. U.S. legislation, including the recently passed ICO/transak”>GENIUS Act, has enhanced their credibility. Financial institutions like Citigroup and Bank of America have shown growing interest in these tokens.
Start highlighted the concept of a “stablecoin sandwich,” where Transak handles parts of the process like Know Your Customer (KYC) checks in different regions for purchasing or redeeming stablecoins. This flexibility is intended to open up a wider market by enabling varied compliance and cash conversion steps linked to stablecoin transactions.
The CEO also explained that some users will operate without encountering cryptocurrency terminology or complexities, similar to how California’s now-terminated blockchain-based DMV service used Avalanche technology without emphasizing it.
Stablecoins can generate revenue for technology companies, with backing assets such as U.S. Treasuries providing low-risk returns. For example, Coinbase reported $355 million in revenue from Circle’s USDC stablecoin in the third quarter. Moreover, major payments companies are increasingly interested, as demonstrated by Western Union’s announcement to launch its own stablecoin on the Solana blockchain next year.
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