Coinbase Partners with Yellow Card to Expand Into African Market

Coinbase recently announced its strategic partnership with Yellow Card, a prominent on-and-off ramp service for cryptocurrencies in the African continent to bring Coinbase's services to 20 countries in Africa, addressing the unique challenges and opportunities within these markets.

By leveraging Yellow Card's robust payment infrastructure, Coinbase intends to grant millions of users access to Circle's USDC stablecoin on Base, a layer-2 network developed by Coinbase. This move aligns with Coinbase's commitment to fostering financial inclusion and accessibility in regions where traditional banking infrastructure may be limited.

Starting in February, African users reportedly can purchase USDC directly through the Yellow Card widget on Coinbase Wallet. This strategic integration will facilitate transactions by allowing users to acquire USDC, a stablecoin pegged to the U.S. dollar, with the convenience of popular messaging apps, including WhatsApp, iMessage, Telegram, and others.

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Yellow Card's Role: Facilitating Fiat to Crypto Transactions in Africa

Yellow Card CEO Chris Maurice commented on the partnership, detailing how Coinbase will integrate Yellow Card's payment rails in Africa. As per Maurice, this integration empowers customers to seamlessly transition between fiat and cryptocurrencies, including Bitcoin and USDC on the Ethereum layer-2 rollup Base. 

Yellow Card's operational footprint spans across 20 African countries, including Nigeria, South Africa, Botswana, Ghana, Kenya, and Tanzania. Coinbase recognizes the economic challenges faced by these nations and views the partnership as a step towards offering a more viable means of transacting within the region. 

The collaboration aligns with Coinbase's "Go Broad, Go Deep" strategy, emphasizing compliant international expansion. As per reports, the partnership signifies a shared commitment to providing cost-effective and efficient financial solutions to regions grappling with high inflation and reliance on remittances.

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Global Ambitions

This move into Africa follows Coinbase's recent announcement of its intention to acquire a MiFID-licensed entity, signaling an ambitious expansion of its derivatives offering in the European Union. The platform, which currently facilitates spot trading in the EU, aims to leverage the license to introduce crypto-based derivatives in Europe.

In December, Coinbase broadened its international offerings by introducing spot trading for non-U.S. institutions, complementing its existing derivatives trading for non-U.S. institutional clients initiated in the previous year.