Yellow Card, Africa's largest crypto exchange, became the first fintech in Africa to launch PayPal USD (PYUSD). This new stablecoin, issued by Paxos and backed by PayPal, will open up new opportunities for digital financial transactions between Africa and the United States.

Africa, although historically one of the smallest cryptocurrency markets, has experienced significant growth in recent years. Between July 2022 and June 2023, the region accounted for 2.3% of global transaction volume, receiving an estimated $117.1 billion in on-chain value. This data highlights the increasing penetration of cryptocurrencies in key African markets and their integration into the daily lives of many residents. As a result, both novice and experienced traders are showing a growing preference for stablecoins due to their user-friendly nature and stability.

Operating across 20 countries, Yellow Card is a fintech company that offers a crypto exchange, easy cross-border payments powered by crypto, and an API suite for companies to on-and-off-ramp anyone on the continent and abroad. In 2022, Yellow Card announced its Series B investment round of $40M, bringing total funds raised to $57M—the most capital raised by any African cryptocurrency company.

In August, PYUSD was launched in the US market and has since gained considerable traction in the industry. As a fully-backed USD stablecoin, PYUSD holds reserves consisting of 100% US dollar deposits, US treasuries, and cash equivalents. Paypal in a transparency report revealed that the PYUSD stablecoin is backed by $44 million in reserve. Although, Yellow Card says the reserve backing PYUSD has undergone stringent regulatory oversight by the New York State Department of Financial Services, guaranteeing the utmost level of consumer protection. Earlier in Novemenber, the payment giant reported that it received a subpoena from the United States Securities and Exchange Commission (SEC) regarding its U.S. dollar-pegged stablecoin.

Chris Maurice, the CEO and Co-Founder of Yellow Card, believes that this partnership embodies the very essence of the company, where innovation, financial inclusion, and progress converge. “Launching PYUSD on our platform is not just a business achievement, but also a commitment to our mission of making digital currencies accessible to everyone in Africa," he said in a press release.

The availability of PYUSD on the Yellow Card platform enables customers to seamlessly transfer funds to and from the US. PayPal and Venmo users in the US can accept PYUSD and convert it into dollars, eliminating lengthy processes while providing security, stability, and speed at a lower cost.

Moreover, this collaboration opens up new global trading opportunities and grants access to customers based in Africa, who can now effortlessly buy, sell, and transfer PYUSD on the Yellow Card platform without requiring a PayPal account.