Revolutionizing Cross-Border Payments with Stablecoin Liquidity: Mansa’s Innovative Approach
As the demand for stablecoins in cross-border payments and real-time settlement continues to rise, startups like Mansa are stepping up to provide liquidity through a revolving line of credit in stablecoins. Based in Dubai, Mansa offers payment companies, primarily in Africa, the ability to settle transactions and fund customer accounts instantly. With $10 million in seed funding, including equity and debt, Mansa is poised for expansion into Latin America and Southeast Asia, regions facing similar liquidity challenges in cross-border transactions.
Founder and CEO Mouloukou Sanoh, along with COO Nkiru Uwaje, bring a wealth of experience in finance, payments, and web3 technologies to the table. Sanoh, an investor in African fintechs, previously worked at Adaverse, a web3 VC firm. Uwaje, on the other hand, led blockchain strategy for Dell in the U.K. and Ireland.
Cross-border payments are critical for global commerce, but liquidity shortages often plague payment providers, leading to delayed settlements and increased operational costs, particularly in emerging markets. With remittance costs averaging 6.5% globally and projected to reach $290.2 trillion annually by 2030, the inefficiencies in the current system could cost businesses billions.
Mansa addresses these challenges by offering fast, flexible pre-funding solutions based on real-time transaction data, rather than collateral. By sourcing liquidity through decentralized finance (DeFi), Mansa aggregates capital from various institutions, including quant funds, family offices, and hedge funds.
For its seed round, Mansa secured $7 million in liquidity from these institutions, with investments from Tether, Faculty Group, Octerra Capital, Polymorphic Capital, and Trive Digital. The partnership with Tether is crucial for Mansa, as it aims to make Tether’s USDT the primary stablecoin in emerging markets, leveraging its accessibility and market dominance.
Despite regulatory challenges, Mansa remains focused on compliance, recently hiring industry veterans to strengthen its regulatory oversight. The fintech is building robust risk frameworks for liquidity and payments, ensuring adherence to AML checks, sanction screening, KYC, KYB, active transaction monitoring, and blockchain analytics tools.
With over $18 million in payments financed and access to $200 million in liquidity, Mansa has seen significant growth since its launch, processing nearly $31 million in transactions. The fintech aims to reach a $1 billion total payment volume run rate this year, serving clients in Africa, Latin America, and Southeast Asia.
Looking ahead, Mansa envisions expanding its services beyond lending to offer foreign exchange and seamless payment solutions. The goal is to become a one-stop payment platform for companies across emerging markets, revolutionizing cross-border payments with stablecoin liquidity.
