Transak’s Shift in Stablecoin Strategy
Transak, a firm specializing in cryptocurrency payment infrastructure, is shifting its approach to stablecoins, aiming to make the technology less visible to consumers. According to Sami Start, the CEO and co-founder of Transak, the focus is now on delivering modular APIs as a white-label solution tailored for established businesses that wish to enhance their offerings with stablecoin capabilities. Having secured a total of $40 million in funding, Transak believes that the future of stablecoin adoption will be more seamless and integrated than it currently appears.
From Marketplace to Financial Applications
Traditionally, Transak has been known as a platform where users could easily buy cryptocurrency, often recognized for providing a ‘buy crypto’ feature within major trading wallets and apps. However, Start indicates a strategic pivot towards facilitating financial applications instead of merely serving as a marketplace for speculative crypto purchases.
“We are unveiling more white-label solutions and focusing on the application of stablecoins in financial technology rather than just buying crypto,”
he explained.
Stablecoins and Consumer Awareness
The recognition of stablecoins received a significant push with the recent passage of the GENIUS Act in the U.S., drawing interest from major financial institutions like Citigroup and Bank of America. Yet, as stablecoins begin to penetrate consumer applications, many users might remain unaware of their use according to Start. For instance, in platforms such as PayPal’s Venmo, users may see their traditional account balances alongside their PYUSD stablecoin holdings, but the stablecoin is displayed separately, creating a layered user experience.
White-Labeling and Market Opportunities
In terms of white-labeling, Start underscored Transak’s connections with the conventional financial ecosystem. He mentioned that some businesses are intrigued by a model referred to as a ‘stablecoin sandwich’—a structure where Transak oversees Know Your Customer (KYC) checks for clients buying stablecoins with cash in one location while also managing transactions for users in different areas wishing to convert their stablecoins back to cash.
“In certain circumstances, we might only handle one part of the operation,”
Start noted.
“By enhancing flexibility within our product infrastructure, we can open up significantly broader market opportunities.”
Behind the Scenes Transactions
This approach may allow some transactions to occur behind the scenes, sparing users from dealing with complex terminology. An analogy is drawn to a recently concluded service by the California DMV that employed blockchain technology, specifically Avalanche, without prominently mentioning the underlying network.
Revenue Opportunities in Stablecoins
Industry experts observe that stablecoins represent an opportunity for tech companies to tap into additional streams of revenue, as the assets that underlie these tokens—predominantly U.S. Treasuries and cash—yield low-risk returns. For example, Coinbase announced $355 million in revenue from Circle’s USDC in the latest quarter. Last month, Western Union added to the growing interest in the space by announcing plans for its own stablecoin to be launched on the Solana blockchain next year.
