African cryptocurrency exchange, Yellow Card, has closed a $15 million Series fundraising round. Sponsored by some of blockchain’s largest venture capital firms, highlighting the continent’s digital asset growth potential.
The continent of Africa has emerged as a hotbed of cryptocurrency usage. Venture capitalists are hoping to profit from the expanding trend.
Yellow Card announced on Monday that the campaign, which was characterised as the largest ever by any African cryptocurrency exchange, will allow the company to extend its operations across Africa and onboard fresh talent. Yellow Card raised $1.5 million in a Series round about a year after raising $1.5 million from a variety of investors.
The crypto world appears to be growing
Yellow Pay began operating in Nigeria in 2018 before extending across the continent. The company’s headquarters are currently located in Atlanta, Georgia. However, the company’s primary focus appears to be on developing a pan-African cryptocurrency network.
Valar Ventures, Third Price, and Castle Island Ventures led the round, with Square, Inc., Blockchain.com Ventures, Coinbase Ventures, Polychain Capital, BlockFi, MoonPay, and others joining in.
Africa continues to be a major source of cryptocurrency market growth. As people devise new ways to resist inflation, restrictive foreign exchange rules, and capital controls. Following the central bank’s decision to limit remittances in the local naira currency, peer-to-peer trading platforms such as Paxful have seen substantial development in Nigeria. As of May, the Nigerian crypto exchange Quidax had reported more than $3.2 billion in lifetime transactions. Demonstrating the country’s growing embrace of cryptocurrency.
BTC is becoming more popular in Africa
Users in the so-called global south are increasingly viewing Bitcoin (BTC) as a vehicle for savings, remittances, and even transactions. In contrast to many advanced industrialized economies where crypto plays a key role as an investable asset class. BTC use in Africa has increased by 1,200% in the last year, according to a new analysis from analytics firm Chainalysis.