Tether, IDG Capital lead $16 million strategic funding round into crypto payments firm Transak

Crypto infrastructure firm Transak has raised $16 million in a strategic round led by Tether and IDG Capital. The capital will help Transak expand its stablecoin payments stack and enter new markets.

"Stablecoins are no longer just a crypto asset. They are now the rails for global value transfer," Transak CEO Sami Start 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."

Transak powers fiat-to-crypto and crypto-to-fiat transactions through bank transfers, cards, local payment methods, virtual IBANs, and stablecoins using its purpose-built Virtual Account APIs, according to the announcement. The firm, based in Miami with offices around the globe, claims to have over 10 million users across 75 countries.

"Transak has built a robust and innovative platform that is making stablecoin access simpler, faster, and more reliable for people around the world," Tether CEO Paolo Ardoino said in a statement.

Tether, the issuer of the largest stablecoin by volume and market capitalization, has been on an investment kick in recent months. This includes taking stakes in alternative social media app Rumble, brain-computer interface startup Blackrock Neurotech, and, most recently, Spanish crypto exchange Bit2Me.

The stablecoin issuer reportedly profited $13.7 billion in 2024.

1kx, 3KVC, CEiC, Fuel Ventures, Primal Capital, Protein Capita, and Umami Capital, among others, also participated in Transak’s round. Ethereum development firm ConsenSys was an early supporter of Transak, participating in its pre-seed and seed rounds. The firm raised $20 million in Series A in 2023.