Ripple Just Did the Unthinkable in Africa (Spoiler: It Involves Crypto and a Bank)

Ripple has taken another step in expanding its presence across Africa. The blockchain firm recently announced a partnership with Absa Bank, one of the continent’s biggest financial institutions. Yawn. As if banks weren’t already drowning in enough existential crypto FOMO. 🦩

This partnership is aimed at introducing crypto custody services in South Africa and stands as Ripple’s first digital asset custody partnership in Africa. Groundbreaking. Next, they’ll probably invent fire. 🔥

Crypto Custody Partnership in Africa – Because Why Not?

Under the agreement, Absa Bank will use Ripple’s secure custody technology to manage cryptocurrencies and tokenised assets for its clients. The goal is to provide a compliant platform that allows institutions to safely store and manage digital assets. Because nothing says “compliant” like blockchain, right? 🧐

Ripple’s Managing Director for the Middle East and Africa, Reece Merrick, said the collaboration shows the company’s long-term vision for the region. 

Today, we’re excited to announce that [redacted], one of Africa’s leading financial institutions, is now Ripple’s first major custody partner in Africa:

We’re bringing institutional digital asset custody to South Africa, providing the secure and…

– Ripple (@Ripple) 🐒

“Africa is experiencing a major shift in how value is stored and exchanged, and our partnership with Absa shows Ripple’s commitment”, Merrick stated. Translation: “We saw the crypto hype train and jumped on it. No looking back!” 🚂

Interestingly, Ripple has been expanding around the world, and has so far covered Europe, Asia-Pacific, Latin America and now Africa. Because why settle for one continent when you can conquer them all? 😈

Absa Enters the Digital Asset Space – Hold My Beer

Absa Bank, which serves over 12 million customers across ten African countries, will now offer institutional crypto custody solutions to its clients. Because nothing says “trust us” like a bank handling your crypto. 🏦

This service will allow companies and investors to store crypto and tokenised financial products using Ripple’s enterprise-grade platform. Which is just corporate speak for “we promise not to lose your coins.” 🤞

Robyn Lawson, Head of Digital Product, Custody at Absa Corporate and Investment Banking, said the move comes with the bank’s mission to provide modern financial tools. 

“We recognise the importance of giving our customers secure and compliant custody solutions for their digital assets. 

Ripple’s technology meets the highest standards of security and performance,” Lawson explained. High standards? Sure, Jan. 🙄

The partnership shows Absa’s confidence in blockchain for Africa’s banking sector. Or maybe they just got tired of being left out of the crypto party. 🎉

Ripple Strengthens Its African Presence – Surprise, Surprise

The Absa deal is not Ripple’s first activity on the continent. Earlier this year, Chipper Cash, a popular African fintech, adopted Ripple’s payment solutions for faster cross-border transactions. Because sending money shouldn’t take three days, right? 🐢

Ripple also introduced its USD-backed stablecoin RLUSD in select African markets and is helping institutions settle payments quickly. Finally, someone’s fixing the “blockchain is slow” PR nightmare. 🕒

Ripple’s recent New Value Report also showed that 64% of financial executives in the Middle East and Africa believe faster payments and settlement are major reasons to use blockchain-based currencies. And 100% of those execs probably have crypto bros whispering in their ears. 🦅

So far, Ripple now holds more than 60 licenses from regulators worldwide, including in Europe, the Middle East, Asia-Pacific and Latin America. License to print money? 🤔

Africa’s Crypto Market Gains Global Attention – Who Knew?

Africa’s digital asset market has grown in the past year. Data from Chainalysis shows that between July of last year and now, Sub-Saharan Africa handled over $205 billion in on-chain crypto transactions. 🚀

This is up 52% from the previous year and makes the region the third-fastest-growing crypto market in the world, behind Asia-Pacific and Latin America. Sub-Saharan Africa? More like Sub-Saharan Crypto-Land. 🏜️

South Africa and Nigeria are leading the charge, with both countries introducing formal regulations for trading, taxation and custody. Hence, these frameworks have encouraged more fintechs to launch digital asset products, from drawing board to reality. Regulations: the ultimate crypto aphrodisiac. 💕

Retail Adoption Expands in South Africa – QR Codes, Baby!

Beyond institutions, crypto use at the consumer level is rising as well. Scan to Pay (a popular QR payments platform) recently teamed up with MoneyBadger to allow crypto transactions at checkout. Because paying with Bitcoin at a QR code feels *so* 2024. 📱

This integration lets users from exchanges like Binance, Luno, Blink and VALR pay using Bitcoin, stablecoins and other cryptocurrencies at over 650,000 Scan to Pay merchants. Just another day in the crypto utopia we were promised. 🌈

Moreover, Payments are completed using QR codes, and merchants receive settlements in South African rand through MoneyBadger’s system. So the banks still get their cut. Classic. 💰

Luno said that this integration connects 30,000 merchants with Scan to Pay, and major retailers including Shoprite, Checkers, Makro and Vodacom are already on board. Next stop: crypto at the grocery store. 🛒