Emtech, a prominent player in the central banking infrastructure space in Africa, has unveiled a $4 million seed investment round led by Matrix Partners India. This funding will be channeled towards furthering the development of its Central Bank Digital Currency (CBDC) stack and its regulatory technology (regtech) solution. Notable participants in the funding round include BTN, Vested, Equity Alliance, and LoftyInc Capital, along with previous investors such as Noemis Ventures, Octerra Capital, and 500 Global. This funding round, which builds on last year’s $4 million pre-seed round and a recent $2 million extension, brings Emtech’s total investment to $10 million.
Emtech’s pivotal offering, the CBDC Innovation Kit, was launched last month, catering to fintechs and financial service providers keen on exploring digital currency solutions based on central bank-led initiatives. The kit enables experimentation with various business models grounded in digital currencies pioneered by central banks.
A highlight of the investment is the strategic introduction of Bitcoin (BTC) and Ethereum (ETH) trading pairs paired with the newly introduced FDUSD stablecoin. Binance’s BTC/FDUSD trading pair will undergo zero-fee trading as part of the Zero Fee Bitcoin Trading Program, commencing on August 4. This program offers users the opportunity to engage in maker and taker trades without incurring fees. Furthermore, the ETH/FDUSD pair will involve zero maker fees, while the standard taker fee will apply based on the user’s VIP level.
Emtech’s ambition to collaborate with 10 central banks has yielded partnerships with six so far, providing regtech and CBDC stack solutions to entities such as the Central Banks of Ghana, Nigeria, and the Bahamas. Through these initiatives, Emtech seeks to facilitate a productive relationship between fintechs and regulatory bodies, easing compliance processes and fostering innovation.
The development of Emtech’s CBDC Innovation Kit, particularly its simulated token “Beyond Cash (BYDC)” built on the Hedera Hashgraph and ERC-20 protocols, aims to bridge the gap between fintech innovation and central banking oversight. Fintechs can leverage this simulator to test transactions and new business models, enhancing the symbiotic relationship between fintech advancements and the evolution of central bank-backed digital currency infrastructures.
By facilitating CBDC-driven innovation, Emtech envisions bolstering financial inclusion across Africa. Aakash Kumar, Principal at Matrix Partners India, expressed enthusiasm for Emtech’s vision, highlighting the potential for regulated CBDCs to empower the region’s financial landscape. He stated, “Emtech’s vision of shaping blockchain-powered fintech infra for CBDCs and solutions for fintech regulation is compelling, and we are excited to partner with them on their journey.”
