Coinbase, a leading player in the global cryptocurrency market, has announced a strategic partnership with Onboard Global, a crypto payments platform, to facilitate seamless buying and selling of cryptocurrencies for users in Nigeria. This collaboration comes in the wake of regulatory challenges faced by Binance, the world’s largest cryptocurrency exchange, which has opened the door for alternative exchanges to establish a foothold in the Nigerian market.
Historically, Coinbase had refrained from offering cryptocurrency trading services to Nigerian users, citing restrictions imposed by regulatory authorities that prohibited transactions with certain high-risk regions. However, with the new partnership, Onboard Global will assume responsibility for managing these regulatory risks. The platform will provide essential verification services and a secure peer-to-peer (P2P) exchange environment, allowing trades to occur without exposing Coinbase to regulatory scrutiny. Notably, Nigerian users can now purchase cryptocurrencies on Coinbase without undergoing Know Your Customer (KYC) verification for transactions under $100, thereby enhancing accessibility to crypto assets.
In a statement, Coinbase highlighted the advantages of the Onboard P2P system, noting that users of the Coinbase Wallet can buy cryptocurrencies using local currency from a network of seller merchants in as little as five minutes. This streamlined process eliminates the need for ID verification for smaller transactions, making it easier for users to engage with the crypto market.
Central to this partnership is Base, a layer-2 blockchain network developed by Coinbase. Base is designed to provide a scalable and cost-effective protocol for cryptocurrency transactions. Built on the Ethereum blockchain, it allows users to access a variety of assets, including Ether ($ETH), ERC-20 tokens such as USD Coin (USDC), Dai ($DAI), Wrapped Bitcoin ($WBTC), Chainlink ($LINK), and over 540 additional tokens. When operating under optimal conditions, Base can achieve a transaction speed of 95 transactions per second (TPS), positioning it as one of the faster protocols in the market.
Onboard Global, which is part of Nestcoin’s portfolio, offers multiple avenues for users to purchase cryptocurrencies. The platform collaborates with Onramper, a crypto payment gateway, to enable users to buy crypto from various liquidity providers, including Yellow Card, Coinify, Neocrypto, Alchemy Pay, and LocalRamp. Users also have the option to fund virtual accounts through bank transfers or purchase directly from P2P merchants.
To ensure a reliable trading environment, Onboard actively vets and recruits merchants to its platform through an interest form. With the partnership established, merchants selling crypto via Onboard will have the opportunity to reach a broader audience through Coinbase’s extensive user base.
In a related development, Coinbase announced on Friday that the U.S. Securities and Exchange Commission (SEC) is expected to drop a lawsuit against the company regarding allegations of operating without proper registration as an exchange, brokerage, and clearing agency. This move to penetrate the Nigerian market through the integration with Onboard positions Coinbase as a significant player in the region, potentially disrupting the competitive landscape among foreign crypto exchanges such as Bybit, Bitget, and Phantom, which are currently active in Nigeria.
While the limited selection of popular cryptocurrencies available on the Base network may currently pose a competitive challenge, this situation is anticipated to be temporary. Coinbase may consider expanding its offerings by integrating additional blockchain protocols or forming partnerships with local platforms that already have established relationships in the market. Such strategies would align with Coinbase’s broader goal of risk mitigation. Looking ahead, Onboard and Coinbase aim to roll out this payment option in over 50 countries within the next year, further solidifying their presence in the global cryptocurrency landscape.
