Nigerian fintech Kredete has expanded its stablecoin and cross-border payments operations into South Africa after acquiring an entity holding a Crypto Asset Service Provider (CASP) licence from the country’s Financial Sector Conduct Authority (FSCA).
The acquisition, completed through a Kredete subsidiary focused on stablecoin infrastructure, gives the fintech a regulated foothold in South Africa as it looks to expand its digital asset-powered payment and remittance services.
Kredete said the transaction was structured as an all-share acquisition, adding that the South African licence will support its plans to offer stablecoin-powered remittance and payment services to individuals and businesses in the country.
The move comes as South Africa develops a more formal regulatory framework for cryptocurrency and digital asset businesses, making it one of the more established markets for crypto-related financial services in Africa.
Kredete builds on $22m funding round
The South African expansion comes about a year after Kredete raised $22 million in a Series A funding round led by AfricInvest, with participation from Partech and Polymorphic Capital.
At the time, the fintech said the funding would support its expansion into Canada, the UK and other European markets, while also helping it scale its stablecoin-powered remittance infrastructure and financial products for African immigrants.
Kredete has since positioned stablecoins as a core part of its cross-border payments infrastructure, allowing users and businesses to move and settle money across markets.
Read also: Nigerian fintech Kredete set to expand into European markets with $22M series A funding
The company said its regulatory expansion is being pursued on a market-by-market basis. Its regulatory footprint also includes virtual asset service provider and payment service provider authorisations in Argentina, as well as an International Money Transfer Operator licence in Ghana.
Tobi Adebowale, Head of Legal at Kredete, said the South African acquisition reflects the company’s broader strategy of building regulated infrastructure around stablecoins.
“This acquisition reflects the depth of Kredete’s belief in the potential of stablecoins as the future of finance in Africa and underscores our commitment to delivering faster and cheaper payments to our customers in South Africa,” Adebowale said.
“It also demonstrates our dedication to providing secure and compliant financial infrastructure for the diaspora communities and businesses we serve, both in South Africa and everywhere else we operate.”
Kredete said the acquisition will allow it to expand its stablecoin-powered remittance and payment services to South African users while continuing to build infrastructure connecting diaspora communities with the markets they send money to.
Founded by Adeola Adedewe, Kredete operates a cross-border payments platform that allows consumers, businesses and financial institutions to move, convert and settle money internationally.
The company said it now supports payments to more than 60 countries and has raised $24.75 million in total funding.
