by Jude Ayua
Yellow Card, a leading crypto platform that offers stablecoin on and off ramp in Africa, has acquired a Crypto Asset Service Provider (CASP) license from South Africa’s Financial Sector Conduct Authority (FSCA). This major achievement validates the company’s compliance efforts and its commitment to providing secure and innovative financial solutions in Africa’s cryptocurrency market.
“This achievement reflects our dedication to providing secure, compliant, and transformative solutions for our customers both in South Africa and across Africa,” remarked Chris Maurice, Yellow Card’s co-founder and CEO.
A leading player in African Fintech
Founded in 2016 and launched in Nigeria in 2019, Yellow Card has become a leading player in Africa’s financial space, processing over $3 billion in transactions. Yellow Card’s platform provides customers across Africa with access to stablecoins like USDT, USDC, PYUSD, and crypto tokens like BTC and ETH. Customers have secure, direct, and cost-effective access using local currencies and payment systems.
Yellow Card’s business focuses on addressing unique financial challenges enterprises in Africa, aimed at providing equal opportunities for Africans to help them achieve financial freedom by giving them easy access to digital assets. It currently operates in 20 countries across: Kenya, Rwanda, Tanzania, and Uganda in East Africa; Benin, Burkina Faso, Côte D’Ivoire, Ghana, Mali, Nigeria, Senegal, and Togo in West Africa; Cameroun, DR Congo, Gabon, and Republic of the Congo in Central Africa; Botswana, Malawi, South Africa, and Zambia in Southern Africa.
Global partnerships and support
Yellow Card’s business growth has been spurred by strategic partnerships with leading firms in the global Fintech space.
In November 2024, Yellow Card partnered with Coinbase to allow Coinbase wallet users across Africa to access and transact USDC and other digital assets using bank transfers and mobile money platforms. The partnership contributed to boosting cryptocurrency adoption in the continent.
In April 2023, Block’s TBD announced its collaboration with Yellow Card “to unlock a network of global fiat on- and off-ramps that bridge traditional payments rails to stablecoins and bitcoin.” Yellow Card became TBD’s first African partner to enable users make and receive global payments and fiat off-ramps using US dollars (USD), stablecoin, or bitcoin in local fiat currencies.
In May 2024, Apps Africa reported that Stables, Australia’s trailblazing stablecoin payment startup, is entering the African market through a strategic partnership with Yellow Card. The Stables platform enables conversion between stablecoins and local currencies, connecting traditional finance with decentralized finance.
Yellow Card’s global partnerships have complemented its business, making it a trusted provider for businesses and individuals seeking efficient digital asset solutions.
Read also: Luno and Zignaly become first to receive crypto licenses in South Africa.
Increased stablecoin adoption in South Africa
South Africa has an 5.8 million cryptocurrency user base, and has witnessed a 50 percent month-over-month growth in stablecoin adoption since October 2023, according to Yellow Card. Statista Market Insights predicts South Africa’s user penetration to be 9.91% in 2024 and is expected to rise to 9.85% by 2025.
Stablecoins have increasingly become the more preferred digital currency over bitcoin in Africa because of their relative stability and use in business operations. Yellow Card’s role in this major shift is remarkable, as it focuses on addressing the challenges of liquidity management and accessibility, empowering African businesses with innovative tools to thrive in the digital economy via its platform.
Read also: Nigeria’s SEC issues ‘Approvals-in-Principle’ to digital assets exchange firms.
Regulatory compliance: an imperative for Yellow Card
South Africa’s CASP license permits Yellow Card to operate fully within the country’s regulatory framework, ensuring high standards of security and compliance. The company’s engagement with regulators across African jurisdictions showcases its strategy to build trust with both authorities and users.
Chris Maurice, Yellow Card’s co-founder and CEO, commented that regulatory compliance is central to Yellow Card’s mission.
“The CASP licence underscores Yellow Card’s commitment to its customers in South Africa and regulatory compliance across the continent. This achievement reflects our dedication to providing secure, compliant and transformative solutions for our customers both in South Africa and across Africa,” Maurice said.
Yellow Card’s approach to compliance aligns with South Africa’s efforts for a robust crypto regulation, including the adoption of the Financial Action Task Force (FATF) standards, which set a strong foundation for its business growth.
Read also: Informally Stubborn- Africa’s Blockchain Yearning for a Better Formal Structure
A Blueprint for Africa’s Digital Financial Future
Yellow Card is also expanding its B2B offerings. It recently closed its Series C financing with US $33 million equity financing led by Blockchain Capital, and having Polychain Capital, Third Prime Ventures, Castle Island Ventures, Block, Inc., Galaxy Ventures, Blockchain Coinvestors, Hutt Capital, and Winklevoss Capital as participants. Commenting on this achievement, Maurice noted, “This fundraise not only demonstrates our resilience, but also highlights the vital role of digital assets for businesses across Africa.”
As Yellow Card expands its presence in regulated markets across Africa, it paves the way for broader cryptocurrency adoption across the continent. Its combination of regulatory compliance, strategic partnerships, and localized solutions positions it as a leading player in Africa’s financial innovation. Bridging the gap between traditional and digital finance and bringing financial inclusion to millions in Africa, Yellow Card’s impact in the continent goes beyond merely facilitating financial transactions. Its growing network and services support its mission of making cryptocurrency accessible, secure, and transformative for all Africans.
Read also: Major use cases of cryptocurrencies in Africa
About the Author: Jude Ayua is a policy analyst at CAB. A lawyer, Jude is an associate at Infusion Lawyers where he is a member of the Blockchain & Virtual Assets Group. He is also a member of the Policy & Regulations Committee of the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN). Jude reports and writes on crypto policy and regulations. jude@infusionlawyers.com