Transak, a Web3 payments infrastructure provider, has become the first fiat-to-crypto on-ramp to introduce wire transfers for crypto users in the United States.
This marks the first time that crypto users in the world’s largest economy will be able to top u their digital asset accounts via wire transfers.
Providing a familiar and secure payment method like wire transfers could bolster crypto adoption and make it more accessible to the mainstream, according to Sami Start, the co-founder and CEO of Transak.
Start told Cointelegraph:
“Wire transfers are one of the most common and trusted methods for transferring funds, and most US users are already comfortable with how the wire transfer system works. Adding this familiar and secure payment method to our extensive list of options is a significant step forward in driving crypto adoption.”
More trusted fiat on-ramps could increase cryptocurrency adoption among mainstream crypto users in the world’s largest economy. The current 560 million crypto users could triple by 2026, according to some experts.
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Wire transfers will be a “game-changer”
Previous fiat-to-crypto on-ramps, such as credit cards, come with significant restrictions, including transaction limits and higher fees, compared to wire transfers.
This is partly why wire transfers could help the industry reach the first billion crypto users, according to Start, who explained:
“As people become more comfortable using crypto for everyday transactions, we anticipate rapid growth, hopefully reaching a billion users in the next few years. We firmly believe that wire transfers can be a game-changer in accelerating crypto adoption.”
Bank transfers could significantly boost new investment into the crypto space.
In the United Kingdom, Transak saw an over four-fold increase in transaction volumes through bank transfers after introducing wire transfers, the firm’s CEO told Cointelegraph.
“By bridging traditional finance with digital assets, we aim to play a key role in the next wave of crypto adoption.”
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Wire transfers are for high-net-worth individuals and large investments
Transak’s new wire transfer feature is available with a minimum threshold of $2,000 and a maximum of $25,000 per transaction.
This is mainly because wire transfers are the preferred transaction method of high-net-worth individuals, according to Start, who explained:
“Our goal is to offer flexibility and choice, ensuring all users can find a payment method that aligns with their investment objectives.”
Transak has been federally licensed as a money transmitter in the US since early 2022, but regulation isn’t the only hurdle.
Finding a banking partner in the US was just as challenging, according to Max von Hulewicz, the head of expansions at Transak, who said:
“We were fortunate to find a bank in the US that is at the forefront of the digital asset space. As one of their alpha customers, we received substantial support, which was crucial in rolling out this product in a compliant and scalable manner.”
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