African stablecoin payment platform Daya has completed a $2.4 million pre-seed funding round, according to an announcement. The company, which is building infrastructure for payments using stablecoins pegged to African fiat currencies, will use the capital to expand its team and develop its technology.

The investment comes as interest grows in blockchain-based solutions for cross-border and domestic payments across the continent. Daya's model involves issuing digital tokens that are backed one-to-one by local currencies held in reserve, aiming to provide a faster and potentially cheaper alternative to traditional banking rails for businesses and individuals.

While the specific investors in this round were not disclosed in the provided material, the funding highlights continued venture capital interest in African fintech ventures that address persistent challenges in financial infrastructure. The broader sector has seen significant activity, with other companies securing capital for related missions.

In a separate development within the African fintech landscape, South African digital lending platform Bridgement secured R330 million in funding from Rand Merchant Bank and Standard Bank. That capital is intended to support lending to small and medium-sized enterprises. Meanwhile, payments giant Flutterwave recently received an investment from Circle Ventures, the venture arm of the stablecoin issuer Circle, to explore solutions for payment delays.

Daya's focus on African currency-pegged stablecoins places it in a niche that regulators across the continent are watching closely. Several central banks, including those in Nigeria, Ghana, and South Africa, are either piloting or researching central bank digital currencies, creating a complex regulatory environment for private sector digital currency initiatives. The company's success will likely depend on navigating these regulations and demonstrating tangible improvements in payment efficiency and cost.

The platform's development will be tested in a market where mobile money, led by services like M-Pesa in East Africa, already provides widespread digital transaction capabilities. Proponents of stablecoins argue they can offer enhanced interoperability for cross-border trade and lower fees for currency conversion, which could support the goals of the African Continental Free Trade Area.