Nigerian Crypto Bank Raises $3.2 Million To Expand International Payment Platform
Canza, a Nigerian finance firm, has secured a significant investment round from investors. Canza will utilise the additional capital to expand its crypto-focused cross-border payment infrastructure. According to reports, the substantial rise totaled roughly $3.2 million.
According to a recent Forbes report, a Nigerian neobank received around $3.2 million in a seed round. Canz Finance was backed by a slew of heavyweight venture capital companies and blockchain industry heavyweights, including Consensys, Protocol Labs, Dominance Ventures, Hashkey Capital, and Boxing Ventures.
Fenbushi Capital, a Chinese capital market firm, allegedly spearheaded the investment round. Canza Finance is a contemporary digital bank that uses blockchain technology to serve people and companies across Africa. The firm enables cross-border transactions and treasury management with the goal of connecting domestic businesses to global markets.
According to co-founders Pascal Ntsama and Oyedeji Oluwole, Canza’s international payments business presently accounts for the lion’s share of the company’s activities. According to CEO Ntsana, the firm processes roughly $1 million in transactions every week.
Additionally, Ntsana said that the corporation has settlement destinations in Canada, China, Turkey, the United Arab Emirates, and the United States. Canza’s current round of funding will be used to expand its footprint in more markets, both inside Africa and in overseas domains.
“By concentrating on cross-border settlement and treasury management, Canza hopes to address some of the most significant difficulties confronting Nigerian businesses doing business abroad.”
Additionally, the business anticipates launching its treasury management software before the end of the year.
Africa’s burgeoning IT scene may soon embrace cryptocurrency technology
While Nigeria is Africa’s biggest economy by nominal gross domestic product (GDP), local firms face a slew of obstacles when it comes to foreign payments. Central bank regulations have been tighter in recent years, making it more difficult for businesses to get the foreign currency and liquidity they need to develop.
However, the cryptocurrency industry’s evolution has shown that decentralised technology has the ability to alleviate common impediments, notably those linked with conventional fiat-denominated cross-border transactions.
Additionally, by providing Nigerian and African companies with a secure payments infrastructure that supports cryptocurrencies like as Bitcoin and Ethereum, we can catalyse aggressive innovation in the continent’s digital economy.
Additionally, stablecoins such as Terra’s UST and Tether USDT provide a less volatile option for businesses looking to take on lesser financial risks.
Indeed, Africa’s burgeoning consumer sector is said to have prompted the growth of more startups focusing on the development of industry-standard payment infrastructure and services. According to NairaMetrics, technology startups raised the lion’s share of the $1.6 billion funded by Nigerian enterprises in 2021.
While the majority of these platforms have not yet used blockchain technology, fast innovation in the global payment sector implies that African enterprises may exploit cryptocurrencies and digital assets in the future years.
The Central American nation that was the first to legalise Bitcoin was set to issue an unprecedented bitcoin-backed bond last week. However, this strategy will be postponed until market conditions improve.