Yellow Card has secured a Crypto Asset Service Provider (CASP) license from the Financial Sector Conduct Authority (FSCA) in South Africa.
The local subsidiary, Yellow Card Financial South Africa, was launched in 2020 and has facilitated over US$3 billion in transactions in the last several years, according to the firm. Yellow Card now operates in 20 countries across the African continent.
Yellow Card to enhance stablecoin rails, B2B API and Widget
The company recently completed a US$33 million Series C financing, led by Blockchain Capital and existing investors, including Polychain Capital, Valar Ventures, Third Prime Ventures, Coinbase Ventures, and Block, Inc. (Square/Cash App), reflecting strong investor confidence in its mission.
With the recent licensing and funding, the company plans to expand its B2B offerings by enhancing its stablecoin rails, upgrading infrastructure, and advancing its B2B API and Widget.
Chris Maurice, co-founder and CEO of Yellow Card, said: “The CASP license 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.
Stablecoin adoption is surging throughout Africa, with sub-Saharan Africa having the highest adoption rate in the world at 9.2%. In South Africa alone, where the number of total users of crypto assets is estimated to amount to 5.8 million people, stablecoins have experienced growth of 50% month over month since October 2023, displacing Bitcoin as the country’s most popular cryptocurrency.
Yellow Card leverages Fireblocks
Yellow Card recently integrated digital asset infrastructure provider Fireblocks to improve cross-border transactions for both businesses and individuals. The stablecoin on/off ramp operating in Africa will leverage Fireblocks to remove obstacles for global corporate treasury, in accessing African markets, by offering secure and effective on-chain solutions.
Fireblocks’ Wallets-as-a-Service (WaaS) will enable Yellow Card to create, manage, and secure up to 14 million multi-party computation (MPC) wallets at scale and safeguard customer assets.
The partnership will tackle the complex challenges faced by multinational corporate treasuries such as regulatory compliance, currency volatility, and inefficient legacy banking systems.
Yellow Card, with a presence in 20 African countries, is at the forefront of assisting organizations in handling foreign exchange (FX) risk through stablecoin transactions. By utilizing USDT, USDC, and PYUSD, the company helps businesses manage their treasury and related transactions within and beyond the continent.
