Avalanche and Fonbnk Forge Partnership to Accelerate DeFi Adoption in Africa

Published on:

  • Fonbnk, a renowned African DeFi organization, has officially announced a partnership with Avalanche, a crypto firm.
  • Fonbnk will make its no-code, low-code, easy-to-use APIs and dApps available to Avalanche developers and customers.
  • The African DeFi company invited developers to join their partnership program to network and create a single pool of information available to Africa.

Africa has gained quite the attention over the past few months. In 2022, Chainalysis shocked the entire web3 ecosystem after revealing Africa had the highest adoption rate of cryptocurrency despite having only a few strongholds. When the 2022 crypto crash shook the foundation of web3, Africa still held its head high.

DeFi in Africa experiences some drawbacks, causing many popular exchanges like Nestcoin and LazerPay to succumb to the pressure of the crypto winter. Despite this downward trend, many veteran traders and newcomers soon turned towards stablecoins due to severe economic issues in several countries.

In 2023, Chainalysis revealed several African nations carved out a place in the global crypto market. This inspired many to rethink their stance on cryptocurrency. For instance, Nigeria officially lifted its ban on cryptocurrency, South Africa launched a new crypto legal framework, and Kenya has sanctioned several research teams on the subject. The resilience of Web3 in Africa is evident, inspiring several organizations to forge new partnerships to better the region’s adoption rate.

In recent news, Fonbnk, a renowned African DeFi titian, has unveiled a recent partnership with Avalanche to overhaul Africa’s financial inclusion and cross-border sanction rate.

Fonbnk partners with Avalanche, overhauling DeFi in Africa

Defi in Africa is a rapidly growing franchise, with many financial institutions turning towards blockchain technology to repair their performance. For the last two decades, Africa’s financial inclusion rate has increased exponentially, with organizations like Flutterwavve, Yellow Card, and Fonbnk leading the charge.

Unfortunately, despite the market’s potential, it has faced some trying times. The 2022 and 2023 crypto winter winters have significantly damaged the reputation of DeFi-based organizations. This led to a rapid downtrend within many DeFi-based companies, forcing some to shut down. However, with the recent rise of stablecoins in Africa and the anticipated 2024 crypto bull run, many expect that the market is gearing up for a second wind. 

With evident signs of improvement, Fonbnk, a renowned African DeFi organization, has officially announced a partnership with Avalanche, a crypto firm.

Also, Read Paycorp and Triple-A Partnership Redefine Crypto Transactions in South Africa.

The African DeFi startup announced the collaboration on their official X account alongside tweets showcasing Fonbnk’s agenda to empower Avalanche’s reach throughout Africa. This partnership paves the way for Fonbnk to utilize Avalanche’s developer and builder community, overhauling the performance of its services. In contrast, Avalanche seeks to use Fonbnk’s off-and-on ramping solutions alongside its firmly established network throughout Africa.

Fonbnk
Fonbnk is a decentralized application (dApp) that lets users convert the value of their prepaid mobile SIM cards into cryptocurrency.[Photo/Fonbnk]
At the time of writing, Africa is undergoing one of its most noticeable digital evolutions. More organizations have sought to improve the region’s financial inclusion rate. Fonbnk and Avalanche have the same thinking: by providing riskless payment throughout the areas and utilizing their partner’s network, both organizations can dominate Web3 in Africa.

According to the announcement, Fonbnk will make its no-code, low-code, easy-to-use APIs and dApps available to Avalanche developers and customers. Moreover, the community will have access to Fonbnk’s Pay Widget to integrate payment solutions into their applications.

At the end of the X thread, the African DeFi company invited developers to join their partnership program to network and create a single pool of information available to Africa. This new collaboration with Avalance is set to overhaul web3 in Africa. Fonbnk already has an extensive reach in the region’s fintech circle. Thus, by incorporating an entity with broader resources and better equipment, Fonbnk intends to boost its network and performance to dominate the market.

Fonbnk is making waves in Africa’s Fintech Sphere.

Fonbnk has provided accessible, blockchain-based financial solutions to Africa since 2018. Christian Duffus first conceived this new market after a family member returning from Kenya told him about MPesa, a mobile money service that predates Bitcoin. The idea sparked a wave of innovation for Duffus, who worked tirelessly to launch Fonbnk in 2019.

Since then, this African web3 company has dedicated its services, resources, and network to developing financial services in the web3 space to overhaul the region’s inclusion rate. Its users can on-ramp into Web3 and traditional financial services catering to both markets. In addition, Fonbnk’s wallet is accessible to any of the world’s 8 billion prepaid mobile SIM cards. This also included its financial OAuth or gateway services tailored to accommodate over 1.7 billion unbanked users.

This African DeFi company has made quite the journey. Initially, Fonbnk partnered with Tanda, a merchant network platform in East Africa. Both organizations established a Web3 on-ramp platform, allowing thousands of merchants to obtain crypto assets by exchanging airtime credits. 

Also, Read Crypto Crisis: Aerodrome and Velodrome Security Breaches Sound Alarm for DeFi.

The organization later partnered with Circle Mint, which led to the development of Fonbnk’s Circle Mint account. This new feature mints USDC so customers can send funds across the Ethereum, Stellar, and TRON blockchain ecosystems. It has played a significant role in developing Africa’s latest trend in stablecoins. With many regions facing economic turmoil, many traders abandoned their local currency for stablecoins, offering more value and anonymity.

According to Duffus, Fonbnk is on a mission to develop a global community powered by financial inclusion in Africa and leveraging existing distributed and DeFi technology. This also includes leveraging the vast Mobile network with free access to the internet. Web3 in Africa is steadily reshaping how many organizations approach several issues. Fonbnk believes that decentralization is truly the next step for the globe. Duffus once said, “Decentralized finance technologies are the missing link to expanding broadband access worldwide and unleashing a slew of economic opportunities to the under-represented.

Related

Leave a Reply

Please enter your comment!
Please enter your name here

Ken Mutuku
Ken Mutuku
I am an enthusiastic writer who believes that facts, knowledge and opinions can be expressed vividly with just a few words. I think that all forms of writing achieve this; hence I have a wide area of expertise and interest, such as cryptocurrency, psychology and the human mind.