Canza Finance, a Nigerian-based cryptocurrency startup, has closed a $2.3 million round to support the development of its DeFi products, including the newly launched Baki.
Polychain Capital led the round.
Other investors in the round include Protocol Labs, Blizzard Fund, 99 Capital, Stratified Capital, and Hyperithm.
About Canza Finance
Canza Finance is a DeFi- focused neobank enabling decentralized cross-border payments for Africans
Pascal Ntsama (CEO) and Oyedeji Oluwole (CTO) founded the startup in 2020
The fintech provides several products for creating credit default swaps.
They include DeFi protocol jollof.fi and CXDS (Centralised eXchange Default Swaps)
It also plans to launch the OTC trading platform jaraOTC for FX and Canza Crypto Teller Machine (CTM) for machine onramps and offramps.
Canza generates revenue by charging 1% of each transaction processed.
About two years ago, it raised $3.27 million in a seed round to offer cryptocurrency-based services in Nigeria and other parts of Africa.
Baki
Baki is the startup’s synthetic FX exchange on-chain protocol.
It is a new system for digitally converting currencies without the need for actual cash in hand
Canza uses Baki to help businesses swap their currencies to the dollar without incurring high forex fees.
Baki aims to reduce transaction fees to 0.2%.
Plans
Oyedeji Oluwoye states that the company plans to accelerate infrastructure development, particularly in Africa.
“With over 50 countries on the continent, our focus is on expanding infrastructure and obtaining necessary licenses in suitable jurisdictions. Additionally, we will drive the growth of our DeFi infrastructure products.” he said
In December 2023, the Nigerian Central Bank lifted the restriction on crypto bank accounts. However, digital service providers need a license document issued by the Nigerian SEC to open an account with the bank.
With the recently obtained funding, Canza Finance intends to secure operational licenses across several countries on the continent.
This is in order to become an authorized registered entity
Canza Finance boasts of facilitating approximately $2,000,000 in transactions weekly.
The fintech serves markets in Senegal, Nigeria, Cameroon, and the United States.