In Brief

• HoneyCoin, a stablecoin payments solution enable near-instant, low-cost cross-border B2B settlements, secures $4.9 Million.

• HoneyCoin’s AI matching engine and bank partnerships show proprietary tech can slash settlement times and fees.

• Long-term scale depends on licenses, clear compliance, liquidity metrics, and bank/regulator trust.

Kenya’s fintech industry takes on a new win with HoneyCoin, a stablecoin payments solution, announcing a $4.9 million seed funding round, led by Flourish Ventures. With added belief, this Kenyan startup intends to counter the persistent frictions of moving money across borders, extending its reach throughout peer countries, Latin America and Asian markets.

Targeting Africa’s $329 Billion Cross-Border Challenge

Stablecoin payment solutions have taken on new meaning within Africa. With these digital assets surpassing even Bitcoin, it underscores the necessity of utility over value. The success of USDC, USDT has directly led to the growth of local stablecoins like cNGN, cKES and ZARP. Its ability to transverse borders, counterintuitive restrictive measures of CBDC, and stablecoins continue to grow, accounting for 43% of Africa’s crypto economy.

CHECK OUT: From Concept to Launch: Africa’s Regulated Stablecoin Journey

HoneyCoin’s core mission, armed with a novel approach, is to redefine how people exchange value around the world, interconnecting fragmented markets with improved finance and product services. The platform eyes Africa’s $329 billion cross-border payments markets. The superiority between stablecoin payment solutions and traditional finance outlets is as clear as day and night, and HoneyCoin is positioning its proprietary infrastructure to leverage on this.

David Nandwa, Founder and CEO of HoneyCoin, reaffirms this ideology, stating:

“We have unlimited runway, we’re profitable and have been for the past 2 years. Our mission is to build the operating system for money; how it’s moved, held, and collected, regardless of medium or geography—just like Apple redefined computing. This raise enables us to lead that transformation, across Africa and other global markets.”

These aren’t empty ideals as the platform’s approach to B2B crypto settlement and stablecoins adoption has rippled throughout its 5 years of operation. The company has processes approximately $150 million across its platforms, serving 50 enterprise clients and over 360,000 direct consumers via its Peer app. The bulk of its revenue comes from its B2B services, while its corporate clientele pays up to $2500 monthly to integrate its payments API.

Its traction recently caught the attention of Flourish Ventures, which has been an active investor since 2021. This total round summed up to $4.9 million, featuring key participation from TLcom Capital, Stellar Development Foundation, Lava, Musha Ventures, 4DX Ventures, Antler, and, notably, Visa Ventures.

The added funds will fuel HoneyCoin’s ambitious to expand its reach in reach in Mozambique, Zambia, Rwanda, Francophone Africa, Latin America, and Asia. Currently, the platform operates in 15 African countries, the US and parts of Europe.

CHECK OUT: Quidax Report: How OTC and Stablecoins Are Changing African Payments

With expansions comes compliance, and with Africa’s recent regulatory shift, HoneyCoin intends to stay ahead of the curve. The platform already holds various licenses, including Money Service Business (MSB) and Payment Service Solutions Provider (PSSP) licences in Canada, a virtual asset service provider (VASP) license in Europe, and MSB approval in the US. In Africa, the platform has secured Letters of No Objection (LNOs) in Nigeria, Kenya, and Tanzania.

The finance will also cater for a new slate of products planned for Q3 2025, including:

• • A Visa-partnered stablecoin-backed debit card.
  • A cross-border liquidity solution for African corporates with Interswitch.
  • Banking-as-a-Service (BaaS) offerings in Ghana, Malawi, and Tanzania.
  • A software POS solution for East Africa.

The Engine: Proprietary Tech Powering Speed and Savings

At the heart of its innovative near-instant cross-border payment services is its blockchain-based API rails integrating stablecoins. The company also keeps track of the latest tech updates, integrating an AI Matching Engine leveraging customer and volume data to net off payment intelligently flows across both ends.

“We’ve built a proprietary, stablecoin-powered AI Matching Engine… coupled with a global colocation network of strategic banks,”

The result: near instant to same-day settlements, funding businesses and users locally and internationally with the added perks of low costs. These innovative combinations form the bedrock of their stablecoin payment solutions, placing them above their competition.

Efayomi Carr, principal at Flourish Ventures, praised HoneyCoin for its potential:

HoneyCoin has the chance to cement itself as the go-to infrastructure layer for collecting, converting, and settling funds in any currency across B2B cross-border payments into and within Africa. The capital will strengthen core infrastructure, deepen bank and regulator relationships, and add senior talent.

Fintech investment opportunities in Africa continuously grow, with most international payment systems seeking to foster local talent. In Africa, it’s often easier and more effective to let us handle our issues since we best understand what is wrong. Ventures like Visa understand this fact and have actively invested in many local startups, all while embedding its various API, indirectly expanding its reach in Africa.

HoneyCoin operates in a competitive space, acknowledging rivals like VertoFX, Nala, Yellow Card, and Cellulant. The difference and its best chance to thrive lies in its innovative approach in integrating AI, stablecoins and static bank collaborations.