Nigerian fintech Kredete has taken a regulated position in South Africa by buying an entity that already holds a Crypto Asset Service Provider (CASP) licence from the country’s Financial Sector Conduct Authority (FSCA). The deal gives the company a way into the market without starting the licensing process from scratch.
A share deal, not a fresh application
Kredete did not apply for the licence itself. It acquired the company that holds it, and it paid in shares rather than cash. The acquisition was completed through a Kredete subsidiary that focuses on stablecoin infrastructure.
This route is common among fintechs that want to enter a regulated market quickly. Buying a licensed entity can save time compared with a new application, though the buyer still takes on the compliance obligations that come with the licence.
What the licence lets Kredete do
Kredete says the licence will support stablecoin-powered remittance and payment services for individuals and businesses in South Africa. The company already uses stablecoins to move and settle money across borders. South Africa gives it a market where crypto-related financial services operate under a formal regulatory framework.
Kredete’s Head of Legal, Tobi Adebowale, framed the deal as proof of the company’s belief that stablecoins will shape the future of finance in Africa. He also said it shows a commitment to faster, cheaper and compliant payments for diaspora communities and businesses.
Part of a wider licensing strategy
The company says it is pursuing regulatory approvals one market at a time. Its existing footprint includes virtual asset service provider and payment service provider authorisations in Argentina, plus an International Money Transfer Operator licence in Ghana. South Africa adds to that list.
Built on a $22 million war chest
The expansion comes about a year after Kredete raised a $22 million Series A round led by AfricInvest, with Partech and Polymorphic Capital also taking part. That brought its total funding to $24.75 million. At the time, the company said the money would fund expansion into Canada, the United Kingdom and other European markets, and help scale its remittance infrastructure.
Founded by Adeola Adedewe, Kredete runs a cross-border payments platform for consumers, businesses and financial institutions. The company says it now supports payments to more than 60 countries.
Why the move matters
South Africa is one of the continent’s more established markets for crypto regulation, so a licensed base there carries weight for a company that wants to be seen as compliant. For Kredete, the deal shows a clear pattern: raise capital, secure licences market by market, and build stablecoin payment rails that serve Africans at home and abroad.
What remains unclear is how quickly Kredete will launch services in South Africa, and whether the FSCA needs to sign off on the change in ownership. Neither point has been disclosed.