Global cryptocurrency exchange Coinbase has partnered with Onboard Global, a crypto payments platform, to enable seamless crypto transactions for Nigerian users. This collaboration comes a year after regulatory challenges between Nigeria and Binance, the world’s largest crypto exchange, creating an opportunity for alternative platforms to expand into the market.
Previously, Coinbase restricted crypto trading services in Nigeria due to compliance concerns, citing regulatory risks associated with certain high-risk regions. However, this new partnership delegates identity verification and transaction security to Onboard Global, allowing Nigerians to buy and sell cryptocurrencies through a peer-to-peer (P2P) exchange platform without exposing Coinbase to regulatory uncertainties.
One of the key benefits of this integration is that Nigerians can now purchase crypto on Coinbase without Know Your Customer (KYC) verification for transactions below $100, granting easier access to digital assets. “With Onboard P2P, Coinbase Wallet users can purchase crypto using local currency from a network of seller merchants in as little as 5 minutes, with no need for ID verification if you buy under $100 in total,” Coinbase stated.
At the core of this initiative is Base, a layer-2 blockchain network developed by Coinbase. Built on the Ethereum blockchain, Base provides a scalable and cost-effective environment for crypto transactions. Users on this network can access Ether ($ETH) and over 540 ERC-20 tokens, including USD Coin (USDC), Dai ($DAI), Wrapped Bitcoin ($WBTC), and Chainlink ($LINK).
With a processing speed of up to 95 transactions per second (TPS) in optimal conditions, Base is positioned as one of the fastest blockchain solutions available, offering efficiency that could enhance crypto adoption in Nigeria.
Onboard Global, a portfolio company of Nestcoin, is key to enabling crypto purchases through multiple channels. It integrates with Onramper, a crypto payment gateway, allowing users to buy crypto from various liquidity providers, including Yellow Card, Coinify, Neocrypto, Alchemy Pay and LocalRamp
Additionally, Onboard facilitates bank transfers for virtual account funding and P2P merchant transactions. The company vet and recruits merchants via an application process, ensuring that only trusted sellers participate in the marketplace. This partnership with Coinbase significantly expands their merchant reach, allowing vendors to access a larger user base.
The Nigerian crypto market has remained highly competitive, with platforms like Bybit, Bitget, and Phantom establishing a strong foothold. However, Coinbase’s entry through Onboard Global could disrupt the landscape, positioning the exchange as a dominant force.
Coinbase’s global strategy also involves risk mitigation. While its Base network currently supports a limited range of cryptocurrencies, this is expected to change as the platform integrates more blockchain protocols and forges additional partnerships. Furthermore, Coinbase and Onboard Global have ambitious plans to extend this payment solution to over 50 countries in the coming year.
This expansion is unfolding amid ongoing legal battles in the U.S., where Coinbase recently claimed that the U.S. Securities and Exchange Commission (SEC) plans to drop a lawsuit against the company for allegedly operating without proper registration.
As Coinbase strengthens its footprint in Nigeria, the real question is: Will this partnership accelerate crypto adoption in one of Africa’s largest digital asset markets?
