Blockfinex buys Fluidcoins in 1st acquisition deal of Nigeria’s crypto ecosystem

Blockfinex, a UAE-based crypto exchange company, has purchased Nigeria’s Fluidcoins for an undisclosed sum.

Fluidcoins, established by technocrat Lanre Adenowo, is an African crypto startup that provides crypto/web3 payment experience and infrastructure for African SMEs and Fintechs. The startup will welcome the acquisition after failing to raise money as intended.

Danny Oyekan, Blockfinex’s CEO, confirmed the acquisition to TechCabal, saying, “This acquisition was driven by a decision to venture into Wallet as a Service and crypto payment processing and scale it across the world”

The acquisition structure—facilitated by Dan Holdings Limited—includes team members of Fluidcoins staying as part of Blockfinex. Coupled with that, it includes all Fluidcoins entities, including Flip and Fluidshops.

Fluidcoins’ Flip is a crypto wallet introduced months ago. The functions of Flip Cover empower customers to receive interest on their stablecoins, buy airtime, process in-app peer-to-peer social payments, and top up virtual calls.

Fluidcoins’ Fluidshops is a cost-friendly online store launched to increase customers’ products’ visibility, generate sales, and receive payments in cryptocurrency. Fluidshops was created to improve the digital experience of entrepreneurs, freelancers, businesses, and digital product owners.

Read: Rwanda becomes the latest African country to restrict banks from processing crypto transactions

According to TechCabal, the deal was possible because Fluidcoins was running out of funds to pursue strategic plans that would help scale the startup’s service across Africa. Thus, agreeing to a deal with Blockfinex was the best thing to do.

Blockfinex’s CEO, Oyekan, highlighted that the acquisition would position Blockfinex as one of the fastest-growing crypto exchanges to watch by helping it launch new products, beginning with a wallet-as-a-service offering, BlockPay.

Blockfinex’s expansion plan 

Blockfinex is an abbreviation for “Blockchain Financial Exchange.”It means infusing blockchain assets and digital technology with finance. It is one of the companies pioneered by Danny Oyekan.

As an innovative crypto exchange, Blockfinex focuses on providing customers with a wide range of services. Commodity-backed Tokens, Utility Tokens, and Security Token Offerings are examples of these services. The exchange has as one of its features a fiat-crypto section accessible by Nigerians to make deposits and process exchanges of any tokens without being charged for transferring them.

Blockfinex intends to launch Fiat-Crypto exchanges in various countries worldwide to compete with the best crypto exchanges in the market.

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Acquiring Fluidcoins is a step towards stamping its authority. In a statement revealed to TechCabal, Blockfinex seeks to leverage the acquisition of Fluidcoins to launch a new product, BlockPay, in the UAE, US, and Africa.

BlockPay is a product that will serve as a payment processor and API wallet-as-a-service provider. BlockPay will facilitate payments for Fluidcoins’ existing customers like The Peer, Accrue, and GetEquity, among others. Blockfinex will now use Fluidcoins’ Wallet-as-a-Service product to reach over 600 cryptocurrencies and expand Fluidcoins Checkout businesses to serve more businesses across the globe.

This transaction between Fluidcoins and Blockfinex is Nigeria’s first of 2023. Since Flutterwave acquired Disha last year, there has been no news of any acquisition deal within the Nigerian tech space.

This transaction is notable as the first in Nigeria’s crypto ecosystem. Reported to donate $20 per user to its affected users from Turkey, Blockfinex is quite an exciting and promising crypto-exchange platform; one to look out for. 

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