Coinbase, a prominent player in the global crypto scene, has joined forces with Onboard Global, a crypto payments platform, to facilitate the seamless buying and selling of cryptocurrencies for users in Nigeria. This collaboration comes on the heels of regulatory challenges faced by Nigeria with Binance, the world’s largest crypto exchange, which has opened avenues for other crypto exchanges to enter the market.
Previously, Coinbase did not offer crypto buying and selling services to Nigerians due to restrictions on transactions with certain high-risk regions. However, through the partnership with Onboard, the risk associated with such transactions will now be managed by Onboard. They will provide verification services and a secure peer-to-peer exchange platform, shielding Coinbase from regulatory risks. Nigerians can now purchase crypto on Coinbase without KYC if the transaction amount is below $100, granting them access to the world of cryptocurrencies.
The collaboration heavily involves Base, a layer-2 blockchain network developed by Coinbase. Base serves as a scalable and cost-effective protocol that supports crypto transactions. Operating on the Ethereum blockchain, Base allows users to engage with various tokens like Ether ($ETH), USD Coin (USDC), Dai ($DAI), Wrapped Bitcoin ($WBTC), Chainlink ($LINK), and many more. With a transaction speed reaching 95 transactions per second (TPS) when uncongested, Base proves to be faster than most existing protocols.
Onboard Global, a company under the portfolio of Nestcoin, offers diverse options for users to purchase crypto. By partnering with Onramper, a crypto payment gateway, users can buy crypto from liquidity providers such as Yellow Card, Coinify, Neocrypto, Alchemy Pay, and LocalRamp, or opt for bank transfers to fund their accounts or buy from P2P merchants.
Merchants willing to sell crypto through Onboard can apply via an interest form on the platform. Through this partnership, these merchants gain access to a larger audience on Coinbase.
In recent developments, Coinbase announced that the US Securities and Exchange Commission (SEC) is considering dropping a lawsuit against the company for operating without proper registration. By venturing into the Nigerian market through this integration, Coinbase establishes a stronger presence and may disrupt the competition among foreign crypto exchanges like Bybit, Bitget, and Phantom already operating in the country.
Although the current limited range of popular cryptocurrencies on the Base network poses a competitive challenge, Coinbase could potentially enhance its offerings by exploring additional blockchain protocols or forming partnerships with local platforms. These strategic moves align with Coinbase’s risk mitigation strategy. The collaborative efforts of Onboard and Coinbase aim to introduce this payment option to over 50 countries in the upcoming year.