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Yellow Card, Africa’s first licensed stablecoin on/off ramp, has announced the successful closing of its Series C financing round, raising $33 million. This equity round was led by Blockchain Capital, with participation from major investors including Polychain Capital, Third Prime Ventures, Castle Island Ventures, Block, Inc., Galaxy Ventures, Blockchain Coinvestors, Hutt Capital, and Winklevoss Capital.

This latest funding round marks a significant milestone not only for Yellow Card but also for the burgeoning African fintech sector. As digital assets and cryptocurrencies continue to gain traction worldwide, the success of Yellow Card underscores the growing importance of stablecoins in addressing some of the continent’s most pressing financial challenges, such as cross-border payments, inflation, and limited access to banking services.

“This fundraise not only demonstrates our resilience but also highlights the vital role of digital assets for businesses across Africa,” said Chris Maurice, CEO and co-founder of Yellow Card. “We are excited about the opportunities, partnerships, and journey ahead, and I’m proud to work with an incredible cohort of investors that share our vision for the industry and the continent.”

Since its founding in 2019, Yellow Card has been a trailblazer in the African fintech ecosystem. Launched initially in Nigeria, the platform has grown rapidly and now operates in 20 countries across the continent. To date, it has facilitated over $3 billion in transactions, providing a crucial service to African businesses and individuals navigating the often complex and fragmented financial landscape.

With its Series C financing, Yellow Card plans to further expand its reach and capabilities. The newly secured capital will be used to fuel growth, focusing on enhancing the company’s API and widget products. These solutions act as vital gateways for international businesses like Coinbase and Block to tap into African markets and enable Pan-African companies to make international payments easily. They also help businesses manage their treasury functions via stablecoins, offering a more efficient way to handle cross-border financial transactions.

One of Yellow Card’s key innovations is its ability to offer stablecoins as a hedge against currency volatility—a major concern for many African nations with fluctuating currencies. Stablecoins, digital currencies tied to stable assets like the U.S. dollar, provide a reliable alternative for businesses and individuals looking to safeguard their assets and transact internationally without being subject to the dramatic swings in value that local currencies often face.

“The future of payments lies in fast, affordable rails for everyone, powered by open networks,” said Aleks Larsen, General Partner at Blockchain Capital, who led the Series C round. “We couldn’t be more excited to back Yellow Card as they bring Africa on-chain with stablecoins.”

While there’s a general rise in the use of stablecoins across the globe as shown in the chart above, Africa is leading the way in the adoption of stablecoins, which have emerged as powerful tools in reshaping the continent’s economic landscape and unlocking new opportunities for Web3 growth.

According to a report by FSD Kenya, stablecoin volume in Africa hit more than $30 billion, which is 50% of the total crypto volume attributed to Africa between June 2022 and July 2023.

In the first half of 2024 alone, stablecoins settled an estimated $2.6 trillion in value, projecting that to double by the end of the year. More than 20 million wallet addresses conduct stablecoin transactions on public blockchains every month.

Beyond facilitating transactions, Yellow Card says it is also committed to engaging with regulators across the continent to ensure that its products remain compliant with local financial laws. As Africa continues to embrace digital finance, regulatory clarity will be crucial for building trust and encouraging wider adoption of cryptocurrencies and stablecoins.

Maurice and his team see Yellow Card’s role as pivotal in creating an inclusive financial ecosystem for Africa, where businesses of all sizes can make international payments, manage their treasuries, and access liquidity using stablecoins. The company aims to position itself as the go-to solution for businesses looking to navigate the complexities of the African financial system while integrating with global financial networks.

Moreover, this recent capital injection will allow Yellow Card to expand its workforce and strengthen its systems, ensuring the company is well-equipped to handle its growing user base and broaden its influence in the fintech landscape. By continuing to innovate and build out its suite of products, Yellow Card aims to provide a robust foundation for digital finance that addresses both the needs of the African market and the broader global shift toward digital assets.

With its large population, increasing internet penetration, and growing demand for financial services, the continent is poised to become a hub for digital finance.

As stablecoins become more integral to global finance, Yellow Card hopes to set a precedent for how these technologies can be used to create more equitable and efficient financial systems in Africa.