Stellar Development Foundation Invests $750k In Nigeria's Cowrie

The Stellar Development Foundation (SDF) has made a $750,000 bet on Cowrie, a Nigeria-based fintech platform facilitating crypto remittance transfers.

The remittance platform, powered by Stellar, permits Nigerians in different international locations to ship cash to their households by changing their funds to NGNT, a token backed by Nigeria’s native naira foreign money. The funds are transferred to the native financial institution accounts of recipients. About $27 million has been traded on the platform since NGNT’s launch in 2018.

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Each new investment comes with opportunities for growing a startup. Crownie will surely benefit from SDF investment and aim for bigger goals. Cowrie co-founder Gbubemi Agbeyegbe said: “Nigeria is the world’s fifth-biggest destination for international remittances with the seventh-largest population globally, but the traditional money transfer process remains costly, inefficient, and impossible for many. The Stellar Development Foundation has been a vital partner in our mission to bring efficient cross-border payments to West Africa. SDF’s investment and support will allow us to continue building upon our 2020 growth and explore new market possibilities.”

SDF said the investment, which was made through its Enterprise Fund, will provide Cowrie with resources to continue expanding its operations in emerging markets and further develop payment corridors between Africa and the world, with an initial focus on Nigeria.

Regulatory is still the biggest challenge for the growth of blockchain startups. Blockchain and cryptocurrency regulation still needs many improvements in Nigeria. But Cowrie is trying its best to work with regulators and become available for average users.

SDF Enterprise Fund aims to remove the growth burdens and helps startups to expand faster. It focuses on innovative solutions that help significant communities. The latest investment in Cowrie will continue as a partnership and assisting them in regulatory challenges, too. It’s the second investment in 2021 from SDF. The first was a $5 Million investment in Wyre. SDF has invested more than $15 Million in blockchain startups from its launch in 2020.