TL;DR,
- Circle Ventures funding backed CV VC’s African Blockchain Fund with $20 million as Africa’s crypto economy grew 52% with stablecoins comprising 43% of the market.
- African blockchain startups are shifting from hype to utility-focused solutions, with 70% providing localized stablecoin use cases for payments and remittances.
- The partnership signals Africa’s emergence as a serious blockchain infrastructure hub, with startups like Kredete and HoneyCoin proving real-world applications can solve economic problems.
Blockchain investment trends hit an all-new ave with African startups continuously catching the attention of global investors. In recent updates, Circle Venture funding has strategically backed CV VC’s (Crypto Valley Venture Capital) African Blockchain Fund with an additional $20 million.
For Africa, startups all over now have an opportunity to secure the finance they require to take their solutions to the next level. The convergence of local and international entities signals a shift in perspective and approach, with locals coming up with solutions that shake the very core of innovation.
Why Circle Ventures Funding Backed CV VC’s African Fund with $20M
Circle, a global stablecoin provider, has finally recognized the potential use and reliance that many retail and institutional investors often bank on in Africa. In a previous article, we highlighted how stablecoins have taken Africa into the next frontier of adoption. Nigeria, South Africa, Kenya, Ethiopia and Ghana are some of the few regions where stablecoins are a means to hedge against inflation and tap into yield-generating strategies.
Brenton Naicker, Principal and Head of Growth at CV VC Lab, called this latest addition the next frontier for web3 startups throughout the continent.
“As stablecoins and Web3 technology continue to flourish across Africa, we remain committed to supporting pioneering founders driving change. We look forward to advancing the future of Web3 together with the Circle Ventures team.”
This very claim is backed by Chainalysis’ recent report showcasing how Africa’s crypto economy has grown by 52% with stablecoins closely following Bitcoin’s dominance. CV VC’s African Blockchain fund focuses on African early-stage startups using blockchain for fintech, payments and data infrastructure. Within the past decade, renowned names like Kredete, HoneyCoin and Yellow Card have inspired many upcoming startups leveraging stablecoins’ broad application within Africa.
Blockchain Infrastructure: The Rails Beneath It All
The Circle Ventures Funding provides the next phase for the development of many startups seeking better blockchain infrastructure and scaling. If we pictured Africa’s digital financial ecosystem as a highway, local startups are the reinforced concrete and traffic signals guiding millions into a new frontier of innovation.
RELATED: Circle Gateway Arrives on Mainnet with Blockradar as Day 1 Partner
What Circle and the CV VC are chasing isn’t flashy startups with next-gen UI/UX; rather, it’s the utility these platforms provide. For instance, take a look at Kredete, a credit-building platform that connects immigrants to their African homes. The platform recent scored a whopping $22 million in funding due to their high reliance on stablecoins, cutting transfer fees to under a dollar. Within six months, the platform recorded that users have seen their credit scores increase by an average of 23 points within six months.
The practical application of blockchain technology is solving real economic problems. Venture capital for web3 startups now focuses on infrastructure that enables easy access, distribution and fiat conversion of stablecoin to local fiat.
Circle Ventures funded CV VC African Blockchain Fund with $20M.[Photo: Circle]
While stablecoin payments facilitate faster transfer rates with super low prices, local startups bridge the gap to local use cases. What makes HoneyCoin stand out is its seamless connectivity to banks and mobile money networks; now over 350 enterprise clients benefit from accessing their capital seamlessly without worrying about which network they should consider when using USDT rather than USDC.
The trend has shifted from hype to diligence and utility, fostering growth factors never seen before. Circle Venture Funding to CV VC showcases how even global players have witnessed this shift. African startups provide venture users with the means to diversify their portfolio while new merchants(whose main focus is on their business) access better solutions.
A Win-Win Scenario for Circle and Africa
Investors always expect something in return, and it’s no different for the global payment platform. Fostering early-stage cross-border blockchain solutions might be a plus, but it also provides the platform with market intelligence.
USDC still competes with USDT and PYUSD, and the African Fund provides exposure to the next wave of startups that could become major players down the line. Stablecoins make up 43% of Africa’s crypto economy, and with platforms like BlockRadar, Azza, Mansa and other platforms, it’s only bound to increase.
The $20 million does provide the finances, but it’s a stamp of approval for Africa’s financial future. Circle Ventures Funding lays the ground for better rails of stablecoins, tokenized assets and resilient settlement layers.
RELATED: Yellow Card Becomes Core Participant Of Fireblocks Enterprise Network
The take-home lesson? Africa just proved that it’s tired of the constant cycle of volatility, and we are crafting our ways to better infrastructure. It’s a new chapter, and many investors are lining up to get the best seats in the market.
