Kenya’s mobile money platform M-Pesa is exploring blockchain integration in an initiative backed by the UAE royal family.
According to a report from Semafor, M-Pesa is collaborating with the ADI Foundation to explore how blockchain can enhance its extensive network of mobile money services.
The ADI Foundation is an Abu Dhabi-based organization behind the development of ADI Chain, a blockchain network targeting institutions such as governments and sovereign entities. The foundation was founded by Sirius International Holding, the digital arm of IHC, one of the largest conglomerates in the UAE. Chaired by the president’s brother and majority owned by the Abu Dhabi royal family, IHC manages more than $500 billion in assets.
The ADI Foundation and M-Pesa recently signed a memorandum of understanding to explore the integration of ADI Chain into the mobile money network, Semafor reports, citing foundation board member Huy Nguyen Trieu. Trieu says the partnership will look to target new users outside of Kenya, where M-Pesa has limited reach.
“M-Pesa has been incredible in terms of financial inclusion. We believe we can go even further by providing the right digital infrastructure, both for individuals and SMEs,” he told the media outlet in an interview.
M-Pesa has more than 60 million users across eight countries in East and Central Africa. Its home market, Kenya, represents the majority of its users; the service is now used by over 90% of Kenyan households and by 2025 it processed KSh. $38.29 trillion ($292 billion). The service has been hailed as a model for financial inclusion in developing countries, with the rate in Kenya now at 85%.
“We are delighted to partner with the ADI Foundation to leverage their expertise in new technologies and how these can transform financial services,” commented Sitoyo Lopokoiyit, CEO of M-Pesa Africa.
Both parties did not reveal what role blockchain would play. However, Trieu hinted at the integration of stablecoins into the mobile money ecosystem. ADI Chain is set to launch its stablecoin this month, following the rollout of its native ADI token in December.
Stablecoin adoption in Kenya has increased significantly in recent years, as Kenyans seek alternatives to costly and slow cross-border payment systems. On-chain data reveals that thousands of Kenyan traders are now paying for their imports from Asian markets with stablecoins, which are settled instantly and at low fees.
Trieu believes the foundation’s blockchain infrastructure will provide “the building blocks to accelerate digital transformation” for M-Pesa users.
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