TerraPay, Cooperative Bank of Oromia and Quantoz Launch Blockchain-Based Settlement for Inward Remittances to Ethiopia

TerraPay (terrapay.com), a global payments infrastructure company, and Cooperative Bank of Oromia (coopbankoromia.com.et) today announced the launch of blockchain-based settlement for inward remittances to Ethiopia. The initiative supports euro-denominated remittance flows from Europe, combining TerraPay’s cross-border payments network, COOP Bank’s nationwide banking reach, and regulated digital euro settlement infrastructure provided by Quantoz Payments (quantoz.com), strengthening efficiency, transparency, and reliability across the corridor.

Ethiopia is one of the largest remittance-receiving countries in Africa, with annual inbound flows exceeding USD 5 billion. The initiative comes at a time of significant reform in Ethiopia’s foreign exchange regime, which is expected to increase transparency and efficiency in cross-border financial flows.

The initiative was developed in collaboration with the Inclusive Financial Technology Foundation (INFTF – inftf.org), which works with central banks and financial institutions across emerging markets to advance inclusive settlement infrastructure. INFTF and TerraPay worked together with Ethiopian financial authorities to establish the regulatory and technical framework for blockchain-based inward remittance settlement.

At the core of the initiative is the use of the Xahau Blockchain (xahau.network)  as the settlement layer. Xahau is a blockchain designed for financial-grade use cases, incorporating account-level smart functionality and deterministic transaction execution. It is used strictly for settlement and operates alongside the existing compliance, licensing, and operational frameworks of the participating institutions.

“Ethiopia’s diaspora sends billions of dollars home each year, and the families who depend on those flows deserve infrastructure that is fast, transparent, and reliable,” said Ambar Sur, Founder and CEO of TerraPay. “By combining regulated blockchain settlement with Cooperative Bank of Oromia’s domestic reach, we are delivering exactly that and establishing a model that can be extended to other corridors where remittances are a lifeline.”

For Cooperative Bank of Oromia, the initiative extends the reach of inward remittances across Ethiopia’s domestic financial system, supporting households and communities nationwide while remaining aligned with local banking and regulatory requirements, in line with the Bank’s purpose of empowering communities and transforming lives.

“For Ethiopia, inward remittances are vital to households and to the wider economy,” said Deribe Asfaw, President and CEO of Cooperative Bank of Oromia. “Our collaboration with TerraPay enables Coopbank, as a leading digital bank, to deliver secure, fast, and fully compliant remittance service across the country. By leveraging modern settlement infrastructure, we continue to expand access to reliable financial solutions while remaining fully aligned with Ethiopia’s financial sector framework.”

Quantoz enables euro settlement to be handled by bridging blockchain settlement rails with regulated digital money instruments, providing a transparent and auditable settlement mechanism that meets the requirements of European financial regulation. 

“Regulated digital euro instruments are a natural fit for compliant cross-border settlement,” said Arnoud Star Busmann, Chief Executive Officer of Quantoz. “Supporting euro settlement for this corridor demonstrates how regulated digital money can integrate into real-world remittance flows with full transparency and accountability, whilst eliminating expensive pre-funding positions”

The initiative is supported by the Inclusive Financial Technology Foundation (inftf.org), which has contributed to aligning the programme with inclusive finance and national development objectives.

“This launch represents an important first step in a broader effort to modernize cross-border settlement in support of national development goals,” said Bharath Chari, Board Member at INFTF. “By aligning regulated institutions with financial-grade blockchain infrastructure, this initiative establishes a foundation for future corridors and expanded inclusion.”