Coinbase Global COIN looks to foray into Africa.
What Happened: Coinbase is partnering with the African stablecoin exchange Yellow Card in an effort to expand its product suite in emerging economies.
It is looking to start with 20 countries across Africa from February 2024.
Read Also: Will Coinbase's Six-Month Rally Go Higher? This Analyst Weighs In
Through the partnership, more than 50% of the African population will have access to USDC purchases through the Coinbase wallet app.
Users can send stablecoins without fees via email and social messaging apps like WhatsApp, iMessage and Telegram. Coinbase’s Layer-2 blockchain Base can be used to buy USDC for leveraging cheaper transactions.
The step is a part of Coinbase’s “Go Broad, Go Deep” Strategy for international expansion. Africa has a very broad base of young population which is likely to see benefits from crypto. As per reports, more than 70% of crypto owners globally are under the age of 34.
Yellow Card has raised $1.5 million in August 2020 in a seed round, as well as $15 million in a Series A round in 2021 and $40 million in a Series B round in September 2022.
Why It Matters: With market sentiment buoyed by the historic Spot Bitcoin ETF approval, a Wedbush report maintained its outperformance rating on Coinbase. The firm raised its price target on the stock to $180 from $110. It cited the company’s leading role in these ETFs.
Mizuho Securities also sees the approval as a “pyrrhic victory for COIN.”
Last week, Coinbase revealed that it is in the process of acquiring a MiFID-licensed entity to expand its derivatives offering in the European Union. The deal is estimated to close in 2024 after it receives regulatory approval.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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