Crypto purchases in local currency now available through Onboard P2P integration within Coinbase Wallet
In a significant move, Coinbase, the popular cryptocurrency exchange platform, has announced its intention to expand into Kenya and over 50 other countries within the next 12 months. This expansion is aimed at increasing access to its services in various regions and supporting the company's growth.
One of the key partnerships driving this growth is Coinbase Wallet's collaboration with Onboard Global, a Nigerian fintech company. This partnership has facilitated easier crypto asset acquisition for Nigerian users by enabling peer-to-peer (P2P) buying of cryptocurrencies through verified merchants directly within the Coinbase Wallet app.
This integration offers Nigerian users a seamless way to purchase assets like USDC stablecoin on the Base blockchain. It also makes funding crypto wallets and spending crypto (e.g., via Zerocard debit card) more accessible and secure, despite regulatory constraints.
Key effects of this partnership include:
- Seamless P2P crypto purchase: Nigerian users can buy crypto through trusted Onboard P2P merchants without the need to go to external platforms, reducing complexity and potential fraud risks.
- Network-specific transactions: Users need to use the correct blockchain network (e.g., Base USDC) to avoid losing funds, highlighting the educational role of this partnership in guiding compliant crypto usage.
- Faster and more reliable settlements: Payments to P2P merchants can clear in under two minutes, a significant improvement in speed compared to traditional or other P2P methods.
- Navigating regulatory challenges: Nigeria has enforced strict crypto regulations, leading to difficulties with centralized exchanges and fiat on/off ramps. The Coinbase-Onboard partnership leverages P2P mechanisms to comply with local regulations while maintaining access for users, offering a form of decentralized access that can bypass some regulatory hurdles.
Compared to other platforms like Binance and Breet, the Coinbase Wallet-Onboard combo provides integrated wallet-to-P2P functionality, enhancing user experience, especially for Nigerians needing stablecoins for spending.
However, users must be mindful of exchange rate spreads and blockchain network specifics during transactions.
In a similar fashion to its partnership with Onboard, Coinbase Wallet has integrated Yellow Card's payment infrastructure to allow its African users buy bitcoin and USDC via the wallet. This move is part of Coinbase's strategy to make crypto more accessible to users in Africa, where forex and central bank restrictions have made card purchases for crypto nearly impossible, forcing users to rely on peer-to-peer exchanges for stablecoins.
The government crackdown on major P2P platforms like Binance and KuCoin in Nigeria has made crypto access even harder. However, Coinbase reported that its platform remained accessible to Nigerian users during the period when attempts to block access were reported.
Coinbase has also announced the fiat onramp feature will begin its rollout in Nigeria and expand to other countries. Onboard is inviting individuals in these countries to sign up as agents to facilitate transactions. This move is expected to further improve the ease and accessibility of buying and selling crypto assets within the Coinbase ecosystem.
[1] Source: Coinbase Blog, Onboard Global Press Release [2] Source: Binance, Breet, Coinbase Blog, Onboard Global Press Release
- Coinbase, working with Onboard Global, has made it easier for Nigerian users to acquire cryptocurrencies like USDC on the Base blockchain through a peer-to-peer buying process within the Coinbase Wallet app.
- The Coinbase-Onboard collaboration allows Nigerian users to purchase crypto assets securely, even when dealing with regulatory constraints.
- The partnership between Coinbase Wallet and Onboard Global facilitates faster and more reliable settlements when buying crypto from P2P merchants in under two minutes.
- By leveraging P2P mechanisms and complying with local regulations, the Coinbase-Onboard partnership offers a form of decentralized access that helps Nigerian users bypass certain regulatory hurdles.
- In support of its mission to make crypto more accessible in Africa, Coinbase has integrated Yellow Card's payment infrastructure, enabling users to buy bitcoin and USDC through the wallet.
- Amidst government crackdowns on P2P platforms and card purchases for crypto in Nigeria, Coinbase reported that its platform remained accessible to users, further expanding its fiat onramp feature to countries including Nigeria, with Onboard inviting individuals to sign up as agents to facilitate transactions within the Coinbase ecosystem.
