TerraPay and Cooperative Bank of Oromia have launched blockchain-based settlement for inward remittances to Ethiopia.

The system supports euro-denominated flows from Europe and combines TerraPay’s cross-border payments network, COOP Bank’s domestic banking infrastructure, and digital euro settlement provided by Quantoz Payments.

Ethiopia receives more than US$5 billion in annual remittances.

The launch comes alongside ongoing foreign exchange reforms aimed at improving transparency and efficiency in cross-border flows.

The programme was developed with the Inclusive Financial Technology Foundation (INFTF), which worked with central banks and financial institutions to define the regulatory and technical framework for blockchain-based settlement in the corridor.

The Xahau Blockchain is used as the settlement layer.

It operates as a financial-grade blockchain with account-level smart functionality and deterministic transaction execution.

The participants use it strictly for settlement, while compliance, licensing, and banking operations remain within existing regulated frameworks.

Ambar Sur, Founder and CEO of TerraPay, said:

“By combining regulated blockchain settlement with Cooperative Bank of Oromia’s domestic reach, we are delivering that and establishing a model that can be extended to other corridors.”

“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.”

Featured image credit: Edited by Fintech News UAE, based on image by diwdom5355 via Magnific