Africa has become a stronghold for the adoption of cryptocurrencies. Venture capital seeks to capitalize on the growing trend.
The Yellow Card African cryptocurrency exchange has closed a $ 15 million Series A fundraiser led by some of the largest blockchain venture capital funds, highlighting the potential for growth in digital assets on the continent.
The fundraiser, which has been described as the largest ever by an African cryptocurrency exchange, will allow Yellow Card to expand its operations in Africa and attract new talent, the company said on Monday. Series A came about a year after Yellow Card successfully raised $ 1.5 million from various investors.
The investment round was led by Valar Ventures, Third Price and Castle Island Ventures with additional participation from Square, Inc., Blockchain.com Ventures, Coinbase Ventures, Polychain Capital, BlockFi, MoonPay and others.
Yellow Pay was launched in 2018 in Nigeria before expanding its operations across the continent. Currently, its headquarters are in Atlanta, Georgia, although the main focus of the company appears to be the creation of a Pan-African cryptocurrency platform.
Africa continues to be a major source of growth for the cryptocurrency market as locals find new ways to fight inflation, tight exchange rate policies, and capital controls. Peer-to-peer trading platforms like Paxful have seen significant growth in Nigeria after the central bank decided to block remittances in the local naira currency. As Cointelegraph reported, Nigeria’s Quidax cryptocurrency exchange reported more than $ 3.2 billion in lifetime transactions through May, underscoring the rapid adoption of cryptocurrencies in the country.