The company becomes the first in the US to offer wire transfers through cryptocurrency
Transak, a Web3 payments infrastructure provider, has achieved a significant milestone by becoming the first fiat-to-crypto on-ramp in the US to enable wire transfers. This new feature allows American crypto users to top up their digital asset accounts via wire transfers, marking a major advancement in the accessibility and adoption of cryptocurrencies in the world’s largest economy.
Sami Start, co-founder and CEO of Transak, emphasized the importance of providing a familiar and secure payment method to users. He noted that wire transfers are a well-known and trusted method for transferring funds, making their introduction a crucial step in driving mainstream crypto adoption. With many US users already comfortable with wire transfer systems, this move could significantly lower the barriers to entering the crypto space.
The integration of wire transfers as a payment option is expected to enhance the overall user experience compared to previous methods like credit cards, which come with higher fees and transaction limits. Wire transfers, by contrast, offer a more straightforward and cost-effective solution for transferring larger sums of money, which could be particularly appealing to high-net-worth individuals. Transak’s wire transfer feature accommodates transactions between $2,000 and $25,000, catering to a wide range of investment objectives.
The adoption of wire transfers could have a profound impact on the growth of the cryptocurrency market. As more users find it easier to invest in and use digital assets, the number of crypto users worldwide is expected to increase dramatically. Some experts predict that the current 560 million crypto users could triple by 2026, driven by more accessible and trusted fiat on-ramps.
Transak’s experience in the UK serves as a promising indicator of the potential success in the US market. The company reported a four-fold increase in transaction volumes through bank transfers after introducing wire transfers, underscoring the strong demand for this payment method.
Securing a banking partner in the US was a significant challenge for Transak, but the company managed to find a forward-thinking bank that supports digital assets. Max von Hulewicz, head of expansions at Transak, highlighted the substantial support they received from their banking partner, which was crucial for the compliant and scalable rollout of this new product.
