Coinbase Partners with Yellow Card to Expand Access to Crypto in Africa
Coinbase has teamed up with African stablecoin exchange Yellow Card to increase access to its products in emerging economies, starting with 20 countries across the continent. Through this partnership, more than half of Africa’s population will be able to purchase USDC through the Coinbase Wallet app, as well as send the stablecoin without fees via email and popular messaging apps like WhatsApp, iMessage, and Telegram.
Yellow Card users will also have the option to buy USDC on Base, an Ethereum layer 2 platform incubated by Coinbase that offers cheaper transactions.
This collaboration aims to address economic freedom and modernize financial systems in countries that face high inflation and are heavily reliant on remittances.
Coinbase’s International Expansion Strategy
According to Coinbase, this partnership with Yellow Card aligns with its “Go Broad, Go Deep” strategy for compliant international expansion. In line with this approach, Coinbase recently announced plans to acquire a MiFID-licensed entity to expand its derivatives offering in the European Union. This move would enable Coinbase to provide crypto-based derivatives in Europe.
In December, Coinbase expanded its international offerings by introducing spot trading for non-U.S. institutions. Additionally, Coinbase’s international arm started offering derivatives trading to non-U.S. institutional clients last year.
Hot Take: Enabling Financial Inclusion and Economic Freedom in Africa
Coinbase’s partnership with Yellow Card is a significant step towards enabling financial inclusion and economic freedom in Africa. By providing access to USDC and facilitating low-cost transactions, this collaboration addresses the needs of countries facing high inflation rates and reliance on remittances. It also paves the way for a modernized financial system where individuals can participate more actively in the global economy.
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