Transak Secures New Money Transmitter Licenses, Expands US Footprint

Transak Secures New Money Transmitter Licenses, Expands US Footprint

Stablecoin payment company Transak has announced the acquisition of new state Money Transmitter Licenses (MTLs) in Iowa, Kansas, Michigan, South Carolina, Vermont, and Pennsylvania. This expansion bolsters its presence in the United States, amid ongoing regulatory fragmentation that shapes how crypto payment firms operate nationwide.

The approvals elevate Transak’s total to 11 licensed states, including Arkansas, Delaware, Illinois, and Missouri. Each license empowers the company to legally process stablecoin transactions, transmit funds, and facilitate fiat-to-crypto conversions directly with users, bypassing intermediaries.

In the US, MTLs authorize companies to handle customer funds, execute value transfers, and function as regulated financial intermediaries under state supervision. “Every new license we secure brings us closer to a future where users can move between fiat and digital assets seamlessly and lawfully,” stated Bryan Keane, Transak’s compliance officer for the Americas.

The Fragmented Path to Stablecoin Compliance

While the licenses expand Transak’s direct reach, they also underscore the complexity of the US regulatory landscape for crypto payment providers. In the European Union, the Markets in Crypto-Assets Regulation (MiCA) framework enables companies to “passport” a single crypto license across all 27 member states. This means a licensed company in one member state can automatically operate across member countries without reapplying for approval in each jurisdiction. The model fosters a unified market for crypto services, streamlining compliance and reducing costs compared to the US’s state-by-state approach.

In the US, companies must secure individual MTLs in each state they operate in. This can necessitate 50 separate applications, each with its own requirements, timelines, and fees, resulting in a patchwork of approvals that makes nationwide coverage expensive and protracted.

For Transak, the push toward direct licensing commenced in 2024 when it received its first state-level MTL in Alabama. The license allowed the company to operate in the state independently of third-party providers.

Although Transak can reach users in 46 states through its partners, its movement toward full licensing represents a conscious effort to establish a native, regulated payments stack.

Transak Eyes Nationwide Coverage

Keane told Cointelegraph that the latest state approvals are more about reinforcing regulatory control than expanding access. “The state licenses we’re now securing are about deepening regulatory control, not expanding access — they give us more flexibility to innovate around upcoming stablecoin use cases and new payment flow architectures,” he said.

Keane added that Transak currently has 19 additional state license applications pending and aims to achieve direct coverage across all 50 states within the next 12 to 18 months. He expressed optimism about federal stablecoin legislation, noting that clear standards would benefit users and infrastructure providers. “Any framework that defines how regulated stablecoins can be issued, held, and used is a net positive,” he stated, while cautioning that aligning federal and state rules could take years.

Until then, Transak intends to continue building within the existing network of state frameworks rather than waiting for complete federal clarity.

Transak Bets on Growing Stablecoin Adoption

On August 6, Transak became the first US crypto on-ramp to enable wire transfers. This allowed crypto users to fund their crypto accounts via wire transfers.

According to its press release, it's preparing to launch Automated Clearing House (ACH) payments – bank-to-bank transfers used for direct deposits – to make bank transfers faster for Americans.

Transak also stated that the new licenses are part of its mission to make stablecoin payments “usable at scale.” The company indicated that additional MTL applications are in progress as it lays the foundation for nationwide stablecoin access.

Transak added that its compliance momentum would ensure that developers, businesses, and users could participate in the next wave of stablecoin-powered cross-border payments within a lawful framework.