Timon, a Nigerian stablecoin-based payments platform, has secured undisclosed funding and launched operations in Kenya, the company announced this week. The expansion follows the fintech surpassing 100,000 users across its existing markets.
The Lagos-based startup, which allows users to send and receive payments using U.S. dollar-pegged stablecoins, has not disclosed the size of the funding round or the names of participating investors. The company said the capital will support its East African expansion and product development.
Timon operates a mobile application that enables users to hold, send, and receive stablecoin payments without requiring traditional banking infrastructure. The platform targets remittance corridors and cross-border transactions, where users seek to avoid currency volatility and high transfer fees.
East African Expansion Strategy
Kenya represents Timon’s first market outside Nigeria. The company said it selected Kenya due to the country’s advanced mobile money infrastructure and growing digital payments adoption. Kenya processed over 2 billion mobile money transactions worth $76 billion in 2023, according to the Central Bank of Kenya.
The fintech will compete with established players including M-Pesa, which dominates Kenya’s mobile payments landscape with over 30 million active users. Timon said its stablecoin model offers advantages in cross-border transactions, where traditional mobile money platforms face higher costs and slower settlement times.
Timon’s expansion comes as African regulators develop frameworks for stablecoin operations. Nigeria’s Securities and Exchange Commission issued draft rules for digital asset offerings in 2023, while Kenya’s Capital Markets Authority has consulted on cryptocurrency regulation without finalising comprehensive guidelines.
The company said it is engaging with regulators in both markets to ensure compliance with existing financial services laws. Timon holds a money transfer operator license in Nigeria, according to the company.
Stablecoin Adoption in Africa
Stablecoin usage has grown across Africa as users seek protection from local currency depreciation. Nigeria’s naira lost 70% of its value against the dollar between 2023 and 2024, while Kenya’s shilling depreciated 27% over the same period, driving demand for dollar-denominated digital assets.
Chainalysis reported that sub-Saharan Africa received $117 billion in cryptocurrency value between July 2023 and June 2024, with stablecoins accounting for the majority of transaction volume. The region ranked fifth globally in cryptocurrency adoption during that period.
Timon said monthly transaction volume on its platform grew 300% in the past year, though the company did not disclose absolute figures. The startup reported that 65% of its users are aged between 18 and 35, with primary use cases including remittances, online purchases, and savings.
The fintech joins other African startups building stablecoin infrastructure, including South Africa’s Revix and Ghana’s Bitmama. Regional competition is intensifying as global stablecoin issuers including Tether and Circle also expand African partnerships.
Timon said it plans to enter additional East African markets in 2025, though it has not named specific countries.