Wednesday, October 5, 2022

Nigeria’s Canza Finance gets $3.27M in Seed Funding

Canza Finance, an emerging Nigerian internet-only bank, obtained a $3.27 million seed funding round to facilitate its crypto-based services for businesses in the country.

Several prominent investors supported the round of which Fenbushi Capital was the lead. It also had participation from Hashkey, Dominance Ventures, Protocol Labs, Emurgo Ventures, and a host of others, as reported by Forbes.

With the support of the investors and strategic partners, Canza intends to expand its crew and also improve its security as well as seize a definite leadership position in the target markets. The new funds will also afford Canza the opportunity to expand the services it provides in Nigeria to other growing markets in South America and Asia inclusive. It will also develop Africa’s Web3 and Decentralized Finance (DeFi) ecosystems.

Colin Evran, an executive at Protocol Lab believes Canza is a testament to the Filecoin launchpad accelerator to revamp start-ups to established corporations.

The Digital bank was established in 2020 by Pascal Ntsama and Oyedeji Oluwole, both of whom were former employees of AT&T. It was established to unite African businesses with the world economy. It also operates exclusively online without traditional physical branch networks.

According to Ntsama, the virtual bank now offers cross-border settlement and treasury management services. With the help of skilled local money traders, it offers financial and transaction-based assistance to its clients with an estimated $1 million weekly sent to several countries making settlements the firm’s leading service.

A cross-border settlement is a security settlement that takes place in a country other than the country in which one or both counterparties are located. With this service in place, Canza can solve some issues Nigerian enterprises face, making itself a crypto-based hawaladar. It also partners with several countries as an on-ramp/off-ramp, thereby rendering help to businesses and Foreign exchange agencies in Nigeria to finalize international transactions.

Using the hawaladar model, a client reaches Canza with the naira equivalent of a payment they want to finalize while Canza transfers the dollar equivalent using stablecoins like USDT to its on-ramp/off-ramp colleague in the designated country.

To check the effect of devaluation, Business-2-Business (B2B) customers can stake their crypto assets in a Decentralized Finance (DeFi) staking pool to attract higher interest rather than keeping in traditional banks with little returns.

Joyce Onose
A Blockchain enthusiast and growing writer in the space with an understanding of the importance in creating quality content for readers in the industry. Also, keen on using her skills in improving Blockchain journalism.

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