Transak expands US presence with Alabama money transmitter license

Web3 payments firm Transak is making significant strides in the United States after receiving a Money Transmitter License (MTL) from the Alabama Securities Commission.

Announced on October 3, this license marks a pivotal moment in Transak’s US expansion strategy, enabling the company to enhance its crypto services in Alabama and meet the growing demand for streamlined access to digital assets.

Founded in 2018, Transak operates in 160 countries, providing an on-ramp and off-ramp for crypto transactions that allow individuals and businesses to navigate the complexities of converting fiat currencies to digital assets.

While registered as a Money Service Business with the Financial Crimes Enforcement Network, Transak has offered its services across 46 US states through third-party providers.

However, securing individual licenses is essential to ensure compliance with state regulations, and Alabama represents the company’s first successful step in this direction.

Transak to enhance crypto services in Alabama

Transak plans to enhance its crypto services in Alabama with the newly acquired MTL, promising faster transaction settlements and improved request fulfillment.

Moreover, Alabama residents will gain access to decentralized applications integrated into Transak’s platforms.

For instance, Transak serves as an on-ramp partner for decentralized applications (dApps) built on the Polygon network, allowing developers to seamlessly integrate its services for users to purchase crypto using local payment methods directly within Polygon-based applications.

This milestone follows Transak’s recent achievement on August 6, when it became the first fiat-to-crypto on-ramp to facilitate wire transfers for US residents.

Wire transfers are particularly advantageous for high-value transactions, offering an extra layer of security through a multi-step verification process.

At that time, Transak emphasized that this new service would help promote broader crypto adoption in the US In addition to wire transfers, the platform supports various payment options, including bank transfers, credit and debit cards, Apple Pay, and Google Pay.

Evolving customer needs

Transak’s expansion aligns with a growing global trend as consumers increasingly seek efficient and user-friendly ways to access and utilize cryptocurrencies.

Businesses are also eager to embrace these innovations, looking to integrate crypto into their operations to meet evolving customer needs.

This shift is driving the rapid integration of traditional financial systems with the crypto ecosystem.

Notably, traditional financial institutions are stepping into the cryptocurrency space, exemplified by Mastercard’s launch of several crypto debit card iterations in collaboration with various partners.

These cards enable users to make purchases with cryptocurrencies at any merchant accepting Mastercard, facilitating real-time conversion of crypto to fiat during transactions.

Similarly, Visa has partnered with multiple crypto platforms, including Crypto.com, BlockFi, and Coinbase, to offer crypto debit cards.

In 2020, PayPal made headlines by allowing US users to buy, sell, and hold cryptocurrencies directly in their accounts.

Just last week, the payment platform extended its crypto offerings to business account holders in the US, further illustrating the growing acceptance and integration of cryptocurrencies in mainstream finance.

The post Transak expands US presence with Alabama money transmitter license appeared first on Invezz