Major Transformation. You can transmute one nonmagical object – no larger than a 5-foot cube – into another nonmagical object of similar size and mass and of equal or lesser value. You must spend 10 minutes handling the object to transform it.
I suppose they could have limited options available...tiny objects can converted into other tiny objects, etc. With options also based on value.
Now to make it interesting in game...turn shackles, a chest or lock into something vulnerable. So could remove the damage resistance setting on items so they can be destroyed. Or turn an item into lockpicks or disarm trap kit. How about make mithral ore and other crafting components. Also when Larian adds crafting perhaps transmuter can have a much greater role (e.g they can create better crafting supplies that make better items).