Blockchain Rails Go Live for Ethiopia Euro Remittances via TerraPay
TerraPay and Cooperative Bank of Oromia have launched a blockchain-based settlement system for inward remittances to Ethiopia, introducing a new infrastructure for euro-denominated flows from Europe into the country. The arrangement combines TerraPay’s cross-border payments network, Cooperative Bank of Oromia’s domestic banking reach, and digital euro settlement provided by Quantoz Payments.
The launch comes at a time when Ethiopia receives more than US$5 billion in annual remittances, underscoring the importance of faster and more transparent payment rails for households and the wider economy. It also aligns with ongoing foreign exchange reforms aimed at improving the efficiency of cross-border financial flows.
How the settlement model works
According to the companies involved, the system uses the Xahau Blockchain as the settlement layer. The blockchain is described as a financial-grade network with account-level smart functionality and deterministic transaction execution. Under the current model, the blockchain is used strictly for settlement purposes, while compliance, licensing, and banking operations remain within existing regulated frameworks.
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 supporting blockchain-based settlement in the corridor.
By linking TerraPay’s international payments infrastructure with Cooperative Bank of Oromia’s domestic capabilities, the initiative aims to streamline the movement of remittance funds from Europe into Ethiopia through euro settlement.
Executive commentary
Ambar Sur, Founder and CEO of TerraPay, said the combination of regulated blockchain settlement and Cooperative Bank of Oromia’s domestic reach is designed to create a model that can be expanded to other payment corridors.
“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,” Sur said.
Deribe Asfaw, President and CEO of Cooperative Bank of Oromia, said inward remittances play a critical role for Ethiopian families and the broader economy.
“For Ethiopia, inward remittances are vital to households and to the wider economy,” Asfaw said. “Our collaboration with TerraPay enables Coopbank, as a leading digital bank, to deliver secure, fast, and fully compliant remittance service across the country.”
Broader significance
The launch reflects a growing interest in using blockchain infrastructure for regulated financial settlement, particularly in markets where remittances are a major source of foreign currency and household income. By keeping compliance and banking functions within established frameworks, the model appears designed to balance innovation with regulatory oversight.
Industry Analysis
This development may be significant for the cross-border payments sector because it demonstrates how blockchain can be integrated into existing financial systems without replacing traditional banking controls. If the model performs as intended, it could support more efficient remittance settlement and provide a template for similar corridors in other markets.
For Ethiopia, where remittances represent a substantial inflow, improved settlement efficiency could help strengthen the reliability of incoming funds and support broader foreign exchange management objectives. For fintech and banking firms, the initiative highlights the potential for collaboration between payment networks, domestic banks, and blockchain settlement providers in regulated environments.
