Web3 payments infrastructure firm Transak has raised $16 million in a strategic funding round co-led by IDG Capital and Tether. The company plans to use the funds to expand its stablecoin payments stack and enter new markets.

The funding round comes at a time in which the stablecoin sector has been growing exponentially. DeFiLlama data shows in early 2024 it has a $130 billion market capitalization, which has since more than doubled to $270 billion. Transak says nearly 30% of its more than $2 billion in processed transactions originates from stablecoin flows.