Coinbase did not previously offer crypto buying and selling services to Nigerians, citing that governing bodies “prohibit transactions with certain high-risk regions.”
Coinbase, the global crypto giant, has partnered with Onboard Global, a crypto payments platform, to enable Nigerian users to buy and sell cryptocurrencies seamlessly. The partnership comes one year after Nigeria's regulatory issues with Binance, the world's largest crypto exchange, opening up the market to alternative crypto exchanges.
Coinbase did not previously offer crypto buying and selling services to Nigerians, citing that governing bodies “prohibit transactions with certain high-risk regions.” However, with the partnership, that risk will be handled by Onboard, which will provide verification and a secure peer-to-peer (P2P) exchange platform for trades to take place, shielding Coinbase from any regulatory risk. If the amount is below $100, Nigerians can buy crypto on Coinbase without KYC, unblocking them from accessing crypto.
“With Onboard P2P, Coinbase Wallet users can purchase crypto using local currency from a network of seller merchants in as little as 5 minutes, with no need for ID verification if you buy under $100 in total,” the global crypto giant said in a statement.
Base, a layer-2 blockchain network developed by Coinbase, will be central to the partnership, providing a scalable, low-cost protocol that supports crypto transactions. As Base is built on the Ethereum blockchain, users can assess Ether ($ETH), ERC-20 tokens like USD Coin (USDC), Dai ($DAI), Wrapped Bitcoin ($WBTC), Chainlink ($LINK), and 540 more tokens on the network. When uncongested, Base reaches a speed of 95 transactions per second (TPS), making it faster than most protocols.
Onboard Global, a portfolio company of Nestcoin, currently offers different options for users to buy crypto. It partners with Onramper, a crypto payment gateway, to allow users buy crypto from different liquidity providers like Yellow Card, Coinify, Neocrypto, Alchemy Pay, and LocalRamp. They can also make bank transfers to fund virtual accounts or buy from P2P merchants.
Onboard vets and recruits merchants to its platform through an interest form. With the partnership in place, merchants who sell crypto via Onboard will gain the opportunity to reach a larger audience on Coinbase.
On Friday, Coinbase claimed the US Securities and Exchange Commission (SEC) planned to drop a lawsuit against the company for operating without proper registration as an exchange, brokerage, and clearing agency. The move to enter the Nigerian market through this integration instantly makes Coinbase a whale in the ocean and could shake up the competition in the industry among foreign crypto exchanges like Bybit, Bitget, and Phantom, operating in the country.
While the limited range of popular cryptocurrencies on its Base network currently reduces its competitive threat, this situation is likely temporary. The global giant could explore adding more blockchain protocols or forming partnerships with local platforms that already have existing relationships. Such moves would align with Coinbase's strategy to mitigate risks. Onboard and Coinbase are aiming to enable this payment option in over 50 countries in the coming year.
