Nigerian Crypto Bank Expands Cross-Border Payment Platform With $3.2 Million Fundraise

Nigerian Crypto Bank

Welcome back to the Tribe! In this post we dive into the expansion of a cross-border payment platform from a Nigerian Crypto Bank!

Nothing should be considered investment or financial advice. Enjoy the ride!

Nigerian Crypto Bank

Nigerian-based fintech startup Canza recently bagged a bumper funding pack from investors. The fresh cash injection provides Canza with financial support to build out its crypto-focused cross-border payment infrastructure. Reports put the hefty raise at around $3.2 million.

Foreign VCs Invest in Canza Finance

A recent Forbes report revealed that a Nigerian neobank has raised some $3.2 million in a seed round. The company identified as Canza Finance attracted investors from a plethora of heavyweight venture capitalist firms and blockchain industry stakeholders including Consensys, Protocol Labs, Dominance Ventures, Hashkey Capital, and Boxing Ventures.

Chinese Capital market outfit Fenbushi Capital reportedly led the funding round.

Canza Finance operates as a modern digital bank that leverages crypto technology for the benefit of consumers and businesses across Africa. The startup facilitates cross-border transactions and treasury management geared towards bridging local business with the global markets.

According to co-founders Pascal Ntsama and Oyedeji Oluwole, the firm’s international payments service currently accounts for a majority of Canza’s operations. CEO Ntsana said that the startup records transactions volumes of around $1 million on a weekly basis.

Ntsana also explained that the company boasts settlement destinations all across the world including Canada, China, Turkey, United Arab Emirates, and the United States. Canza’s latest raise will be deployed towards establishing a presence in more economies, both within Africa and in international jurisdictions.

“By focusing on cross-border settlement and treasury management, Canza is looking to solve some of the biggest challenges facing Nigerian enterprises that do business internationally.”

The company also expects to debut its treasury management product before the end of the year.

Africa’s Booming Tech Scene Could Tap Crypto Technology Soon

Although Nigeria is the largest economy in Africa by nominal gross domestic product (GDP), local businesses face a myriad of restrictions when transacting international payments. Central Bank restrictions have tightened in recent times, making it more difficult for companies to access foreign exchange and liquidity needed to expand.

However, the developments in the cryptocurrency industry have shown that decentralized technology has the potential to mitigate the common obstacles particularly associated with traditional fiat denominated cross-border transactions.

Furthermore, connecting Nigerian and African businesses with a secure payments platform with support for cryptocurrencies like Bitcoin and Ethereum could be the catalyst for aggressive innovation in the continent’s digital economy.

Stablecoins like Terra’s UST and Tether USDT also offer a less volatile alternative for companies interested in taking on smaller capital risks.

Indeed, Africa’s booming consumer economy has supposedly incentivized more startups focused on building industry-standard payments infrastructure and services. A report from NairaMetrics showed that tech startups accounted for a majority of the $1.6 billion raised by Nigerian firms in 2021.

While most of these platforms have yet to tap blockchain technology in building their platforms, rapid innovation in the global payment industry suggests that African firms could leverage cryptocurrencies and digital assets in the coming years.

Other News – El Salvador’s Bitcoin Bond

The Central American country which was the first to make Bitcoin a legal tender, slated last week for the issue of an unprecedented bitcoin-backed bond. But this plan will be delayed till the markets are favorable.