Coinbase, a global crypto giant, has partnered with Onboard Global, a crypto payments platform, to enable Nigerian users to buy and sell cryptocurrencies seamlessly. This partnership comes one year after Nigeria's regulatory issues with Binance, the world's largest crypto exchange, opening up the market to alternative crypto exchanges.

Prior to this partnership, Coinbase did not offer crypto buying and selling services to Nigerians, citing that governing bodies "prohibit transactions with certain high-risk regions." However, with Onboard handling verification and providing a secure peer-to-peer (P2P) exchange platform, Coinbase is now shielded from regulatory risk. This means that Nigerians can buy crypto on Coinbase without Know-Your-Customer (KYC) verification if the amount is below $100.

According to Coinbase, 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 the total amount is under $100. This is made possible by Onboard's P2P platform, which connects buyers and sellers directly.

Base, a layer-2 blockchain network developed by Coinbase, will play a central role in this partnership. Base provides a scalable, low-cost protocol that supports crypto transactions, allowing users to access a wide range of tokens, including Ether (ETH), USD Coin (USDC), Dai (DAI), Wrapped Bitcoin (WBTC), Chainlink (LINK), and over 540 more tokens on the network. When uncongested, Base reaches a speed of 95 transactions per second (TPS), making it faster than most protocols.

Onboard Global, a portfolio company of Nestcoin, currently offers different options for users to buy crypto. It partners with Onramper, a crypto payment gateway, to allow users to buy crypto from different liquidity providers like Yellow Card, Coinify, Neocrypto, Alchemy Pay, and LocalRamp. Additionally, users can make bank transfers to fund virtual accounts or buy from P2P merchants.

Onboard vets and recruits merchants to its platform through an interest form. With the partnership in place, merchants who sell crypto via Onboard will gain the opportunity to reach a larger audience on Coinbase, potentially increasing their customer base and revenue.

This move marks a significant entry into the African market for Coinbase, which could shake up the competition among foreign crypto exchanges like Bybit, Bitget, and Phantom operating in Nigeria. While the limited range of popular cryptocurrencies on its Base network currently reduces its competitive threat, this situation is likely temporary. Coinbase could explore adding more blockchain protocols or forming partnerships with local platforms that already have existing relationships, aligning with its strategy to mitigate risks.

In the coming year, Onboard and Coinbase aim to enable this payment option in over 50 countries, further expanding their global reach. This partnership is a significant development in the crypto industry, and its implications will be closely watched by market observers and enthusiasts alike.