Coinbase Wallet Partners with Onboard Global To Facilitate Crypto P2P Payments
ETH
CCY
TBA
ACH
P2P
Cryptocurrency exchange Coinbase Wallet has partnered with Onboard Global to enable users within Nigeria to make crypto P2P payments and buy and sell digital assets securely.
According to the announcement, the collaboration will enable Nigerian users with the local government-issued currency to leverage Onboard’s secure platform.
Facilitate Secure P2P Crypto Payments
The Nigerian crypto market was initially off-limits for leading crypto exchange Coinbase wallet, which cited that the government prohibited “transactions with certain high-risk regions.” Nonetheless, the new partnership will now facilitate secure P2P crypto payments, enabling users to trade while the exchange is shielded from regulatory issues. Moreover, users with transactions whose value is lower than $100 will be exempted from KYC requirements. The statement from Coinbase wallet said:
“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 $100 in total.”
Base L2 Runs On the Ethereum Blockchain
Coinbase Wallet will employ Base L2, its latest Layer-2 blockchain network that facilitates a scalable, low-cost protocol that supports faster crypto transactions. Base L2 runs on the Ethereum blockchain and enables users to access cryptocurrencies like ETH and several ERC-20 tokens such as USD Coin (USDC), Dai ($DAI), Wrapped Bitcoin ($WBTC), Chainlink ($LINK), and over 540 other tokens on the network. During off-peak periods, Base can reach up to 95 transactions per second (TPS) speeds, making it faster than most protocols.
Onboard Global, on the other hand, is a portfolio company that facilitates P2P crypto payments by enabling users to easily access digital assets. The firm partners with several crypto payment gateways like Onramper to enable users to access digital assets from different liquidity providers like Alchemy Pay and LocalRamp. It also facilitates bank transfers to fund virtual accounts or buy from P2P merchants.
P2P Crypto Payments to Become a Viable Option
The initiative’s announcement by Coinbase wallet happened when the exchange just announced that the US SEC had intimated plans to drop a lawsuit against the company following previous accusations that the company operated as an exchange, clearing agency, and brokerage without proper licensing. By making a move that facilitates more manageable P2P crypto payments within Nigeria, Coinbase wallet gains an edge over other exchanges already operating in the country, albeit at a lower premium, given their market positions.
While the Base network may still be relatively new and offers a limited range of cryptocurrencies, Coinbase Wallet retains the potential to increase its presence in the Nigerian and other African markets. The exchange already has several partnerships with several local platforms. The move to enter Nigeria highlights the exchange’s strategy to mitigate risks and enter new markets where P2P crypto payments could become viable for the growing digital populations.
Conclusion
The decision by Coinbase Wallet to enter the Nigerian market has the potential to boost cryptocurrency adoption and trading activity in the region. By using Base, its latest L-2 addition that’s built on the Ethereum blockchain and can process up to 95 transactions per second when uncongested, the fast transaction speeds will position Coinbase Wallet as a major player in the Nigerian crypto market, which could potentially influence competition among other foreign exchanges operating in the country.
Frequently Asked Questions (FAQs)
What is Base L2?
The Base is Coinbase’s answer to the challenges Ethereum and other Layer 1 blockchain face, offering improved scalability and reduced transaction costs.
How does Base L2 work?
Base L2 uses Optimistic Rollups to aggregate and process transactions off-chain before submitting them to the Ethereum Mainnet for finalization.
How does Base work in crypto?
The Base combines numerous transactions into one batch, which it then sends to the Ethereum mainnet. This mechanism enables Base to speed up processing and lowers the cost, boosting the scalability.
What are the other benefits of Coinbase’s Base L2?
Base is a secure, low-cost, developer-friendly Ethereum Layer 2 solution that also improves developer experiences across DApps.
Appendix: Glossary of Key Terms
Ethereum: Ethereum is a decentralized, blockchain-based platform that facilitates peer-to-peer contracts and decentralized applications (DApps). Its native cryptocurrency is Ether (ETH).
BASE L2: A Layer 2 (L2) blockchain developed by Coinbase, designed to enhance the scalability and efficiency of the Ethereum blockchain while maintaining its security.
KYC: “Know Your Customer” refers to procedures businesses, especially financial institutions, use to verify a customer’s identity.
P2P Payments: P2P” generally stands for “peer-to-peer,” meaning a direct interaction or exchange between individuals or devices without involving a central authority or intermediary.
References
