Next wave of Stablecoin boom may seem invisible, says Transak CEO

Most companies want their brand to be front and center when a consumer uses their product, but as an infrastructure provider specializing in crypto payments, the opposite is more likely to be true for Transak and its partners. stable currency ambitions.

This is what Transak co-founder and CEO Sami Start says Declutter that the company is leaning towards modular APIs as a white-label offering for established companies looking to expand their existing services with stablecoins.

As a result, the Tether-backed company has increased With $40 million in total funding, I’m willing to bet that the next wave of stablecoin adoption will feel more invisible than what it looks like today. Historically, Transak has focused on allowing users of other applications to buy crypto with cash.

“People know Transak as a ‘buy crypto’ button on major wallets and other crypto apps,” he said. “We are starting to roll out more white-label use cases and stablecoin use cases, which involve onboarding and using financial applications, rather than buying crypto for speculation.”

Dollar-pegged tokens got a boost in legitimacy this year from the passage of the GENIUS Act legislation in the US, with institutions from Citigroup to Bank of America showing interest. Still, when they reach consumer applications, some users won’t be aware they’re using them, Start said.

For applications like PayPal’s Venmo, that could look like tracking a user’s traditional account balance combined with holdings of PYUSD. Currently, the company’s stablecoin is listed separately from ‘cash’ for users on the mobile app’s ‘crypto’ page.

When it comes to white-label use cases for stablecoins, where the Transak brand is not associated with the product, Start emphasizes the company’s endpoints with the traditional financial system. Some companies, he added, are interested in the concept of a so-called stablecoin sandwich.

For example, Transak can handle Know Your Customer (KYC) procedures for an individual purchasing a stablecoin with cash in one region, as well as someone receiving the same token in another region who then wants to convert that money back into cash.

“In some cases we can only do one side of it,” he said. “But by making our product a little more flexible, we simply open up a much larger market.”

Start noted that the process could be happening in the background for some users, who aren’t exposed to the industry jargon. In some ways it parallels the recent California DMV sunset blockchain-based service used Avalanche, but did not call the name of the layer 1 network.

Experts participation that stablecoins can provide tech companies with additional revenue because their backing assets – often US Treasuries and cash – generate low-risk returns. For example, in the third quarter Coinbase reported $355 million in revenue coming from Circle’s USDC.

Last month, Western Union became the latest payments giant to show interest in the technology, with the remittance specialist saying it would debut its own stablecoin on Solana next year.