Yellow Card, Africa’s first licensed stablecoin, has secured $33 million in a recent funding round led by Blockchain Capital. This capital will go towards further boosting the digital payments and cryptocurrency ecosystem on the continent.
Cryptocurrencies, and especially stablecoins, have captured the attention of users and businesses in Africa. PwC and Emurgo Africa published a report highlighting the exponential growth that Web3 technologies are experiencing on the continent, driven primarily by accessibility to financial services.
In this context, the Yellow Card stablecoin attracted the attention of the financial sector with its recent funding round. The capital raised was led by Blockchain Capital, along with the participation of prominent investors from the crypto world such as Winklevoss Capital, Block Inc., Galaxy Ventures, Polychain Capital, Hutt Capital, among others. The project has been at the forefront of cryptocurrency adoption on the continent and plans to use these funds to expand its reach and improve its products, which will further facilitate digital payments in the region.
Chris Maurice, CEO of Yellow Card, said that this recent round of funding will unlock new opportunities in the stablecoin market to further boost the cryptocurrency and digital asset ecosystem in the region. According to Emurgo Africa, stablecoins “are quickly becoming the preferred medium of exchange in sub-Saharan Africa.”
The investment will allow the company to strengthen its infrastructure and develop solutions that meet the needs of the population. With this financing, Yellow Card also seeks to position itself as a key player in the transformation of financial services in Africa, offering accessible and efficient alternatives through stablecoins.
Stablecoins put Africa at the forefront of mass cryptocurrency adoption
Stablecoins have gained popularity in Africa due to their ability to offer stability and accessibility to financial services. These digital currencies, often pegged to fiat currencies such as the US dollar, allow users to conduct international transactions quickly and affordably, with low commission fees and without having to worry about the price volatility typical of cryptocurrencies.
This accessibility of low fees is what several reports point to as the main driver of demand for cryptocurrencies in the region. In a context where international transfer costs are high, Stablecoins offer a viable alternative, which allows users to reduce costs when sending a transaction or making a payment.
But in Africa, stablecoins are not only facilitating digital payments, they are also Opening the door to broader access to financial services for those who have traditionally been excluded from the banking system. According to Emurgo, the adoption of these digital currencies is aligned with the increasing digitalization of the African economy. With more than 20 million wallet addresses carrying out stablecoin transactions on public blockchains every month, the region is experiencing an unprecedented boom in the use of digital assets. For the firm, all of this not only reflects a change in the way people carry out transactions, but also indicates a growing interest by companies in integrating these technologies into their daily operations.
Companies are driving the growth of the crypto ecosystem
The cryptocurrency ecosystem in Africa is being fueled by a growing number of companies that are adopting and promoting the use of cryptocurrencies and stablecoins. These companies are innovating and creating solutions that enable consumers and businesses to manage their finances more efficiently.
In the region, the GameFi sector has also captured the attention of young people, who see these blockchain-powered gaming platforms as a way to generate recurring revenue. This combination of a young and technologically savvy population has reportedly led to an increase in the adoption of cryptocurrencies and digital assets, which facilitate transactions within these games, becoming an attractive means for users to make digital payments quickly and securely.
Furthermore, the integration of blockchain technologies in sectors such as agriculture, education, and financial services is demonstrating the potential of cryptocurrencies to transform the African economy. Several companies are exploring innovative applications that use smart contracts to improve transparency and efficiency across various industries. This not only benefits businesses but also empowers communities by providing them with access to financial tools that were previously inaccessible.
