Nigerian Fintech Startup Vella Finance Abandons Crypto Services

    Vella Finance, a Nigerian fintech startup, has ceased its crypto-related services, opting for a focus on SME banking. Co-founder Tolu Adedayo cites the need to adhere to regulatory constraints as the driving force behind this strategic shift.

    Nigerian fintech Vella Finance has chosen to exit the crypto service sphere, shifting its attention towards small and medium-sized enterprise (SME) banking. In a recent announcement, co-founder Tolu Adedayo revealed that the decision was driven by the need to operate within the boundaries of financial regulations.

    According to a Techcabal report, Vella Finance notified its users and subscribers on October 23, declaring the discontinuation of crypto services effective October 30. Adedayo clarified their reasoning behind this move, stating, “We’re going fully into SME Banking. Banking requires playing in regulatory confines. We already serve businesses from the onset backed by user and transactional data. It just makes sense to offer an end-to-end banking system to better serve them.” Adedayo also expressed doubts about the practicality of simultaneously offering cryptocurrency and banking services.

    This strategic shift comes at a time when Nigeria has witnessed growing interest in digital assets, notably in the wake of a depreciating local currency. Despite this trend, Vella Finance is determined to reinforce its position in the business banking sector with new features.

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