RedotPay Eyes Entry Into the Central Bank of Nigeria’s Regulatory Sandbox

What to Know:

• Blockchain law firm BlockLaw Consulting says it is helping RedotPay explore entry into the CBN regulatory sandbox.
• The move follows RedotPay’s regional push, including its December 2025 launch of the “Send Crypto, Receive NGN” feature powered by Ripple Payments, and the launch of the Nigerian chapter of its crypto community, RedotsClub.
• In August 2026, the CBN launched Cohort 2 sandbox with a dedicated VASP track, aligning with a broader trend of structured regulatory engagement in Nigeria.

​Global digital asset payment platform RedotPay is positioning itself for deeper formal engagement in West Africa’s largest crypto market.

In a recent post shared on LinkedIn, BlockLaw Consulting’s managing partner, Olayimika Oyebanji, noted that his firm recently advised RedotPay through the complex process of applying for entry into the Central Bank of Nigeria’s (CBN) Regulatory Sandbox.

While an official corporate announcement from RedotPay is yet to be finalised, the advisory notes highlight a strategic shift toward proactive regulatory integration into African markets.

Expanding Local Roots: From NGN Payouts to Communities

RedotPay is a Hong Kong-based fintech, founded in April 2023 and led by CEO Michael Gao. It offers a stablecoin-linked card, payout rails, and multi-currency wallets. The company says it has more than six million users in over 100 markets and above $10 billion in annualised payment volume, per its funding announcement in late 2025

This potential regulatory pivot comes on the heels of several operational milestones for RedotPay across the continent. In December 2025, the platform officially launched its “Send Crypto, Receive NGN” feature powered by Ripple Payments.

The feature lets users seamlessly convert major digital assets like USDT, USDC, and XRP into Nigerian Naira and deposit them instantly into local bank accounts. The feature addresses the critical “last-mile” conversion friction for freelancers and everyday crypto earners.

Beyond payment corridors, RedotPay has steadily cultivated grassroots adoption. The RedotsClub community model, launched in June 2025 with a Nigerian chapter, recently opened a South African one in July. Securing formal regulatory standing in Nigeria marks a natural evolution from community building to licensed institutional integration.

Why Nigeria, and why now?

The Nigerian crypto market is large. Chainalysis’ 2026 index ranks Nigeria third overall, and first for peer-to-peer and cross-border flows, as previously reported by Crypto Africa News.

It also aligns with a pivotal shift in Nigerian regulatory oversight. On August 11, 2026, the CBN announced the official commencement of Cohort 2 of its Regulatory Sandbox Program. For crypto firms, Cohort 2 introduced a dedicated Virtual Asset Service Provider (VASP) Track. The VASP track specifically covers virtual assets, stablecoins, digital wallets, and cross-border settlement mechanisms. 

The SEC has also expanded its ARIP sandbox to 14 firms, with the Director-General assuring firms that its regulations are intended to create structural pathways to the market. For RedotPay, the sandbox would provide a controlled environment for fintechs to test innovative products under direct regulatory supervision.

Why This Matters

The CBN’s application window closed on 31 August. It is unclear whether RedotPay applied, or if the firm is aiming for a later intake. If RedotPay successfully secures a spot in the CBN’s sandbox, it could establish a blueprint for how international Web3 firms achieve compliance and sustainable growth across African jurisdictions.

Given Nigeria’s dominant trading volumes and high retail crypto engagement, global platforms can no longer afford to operate purely offshore. RedotPay already pays out naira and runs community chapters. Entering the sandbox would give it a supervised route to operate in a market that leads the world in cross-border crypto.