Xahau Settlement: TerraPay, COOP Bank, & Quantoz

May 08, 2026 at 02:31 PM

Updated May 08, 2026 at 03:35 PM

The Inclusive Financial Technologies Foundation (InFTF) has announced a new three-way partnership bringing together global payments infrastructure company TerraPay, the Cooperative Bank of Oromia (Coopbank), and stablecoin provider Quantoz Payments - using the Xahau network as the settlement layer for remittances to Ethiopia.

InFTF Announcement

Quick History

In October of 2024, the Coop Bank of Oromia and the InFTF made headlines. Coop Bank was the first bank in Ethiopia - and arguably in Africa - to launch a blockchain-powered remittance service. The solution ran on the Xahau network and was delivered through a dedicated "Coop Remit" xApp built into the Xaman non-custodial wallet. It allowed members of the Ethiopian diaspora - many working in Europe, the Middle East, and the U.S. - to send funds home in a matter of seconds, at a fraction of traditional costs.

The xApp was live, with real money.

Xahau's inline smart contract functionality (called "hooks") enabled each payment to be automatically screened for compliance, making the process both fast and regulatory-friendly. The InFTF brought the technical expertise to wire it all together, while Coop Bank - with over 13 million account holders and 760+ branches - provided the on-the-ground banking reach.

That project is now being retired.

The New Deal

The new arrangement scales the original concept to a larger size.

TerraPay, a world-wide, (B2B) cross-border payments network with established relationships across the remittance industry, now has an additional EURO-to-ETB rail for money transmission. While they do not deal with end-users directly, they provide the infrastructure that is used by others to send money into Ethiopia.

Their proprietary network of clients then, theoretically, take over the role that the Coop Remit xApp previously played for end-users.

This means Ethiopian families abroad can now access the service through TerraPay's broader network of various money transmitter partners, rather than a niche wallet app.

Quantoz Payments handles the liquidity and stablecoin conversion, providing a regulated digital Euro settlement infrastructure that bridges the gap between the sending currency and the local Ethiopian Birr (ETB). Coopbank then completes the "last mile" - routing the converted funds to the correct destination bank account across Ethiopia, drawing on its nationwide branch network.

The InFTF continues to play a coordinating role, having facilitated the Xahau integration points.

Benefits

The shift from (one) wallet-based xApp to (potentially) many remittance providers is a meaningful upgrade for everyone involved. For end-users, it means accessing Ethiopia-bound transfers through existing, familiar, widely-available platforms - rather than needing to download a specific wallet and learn its interface. For TerraPay and Coopbank, it's a chance to deepen their corporate footprints in one of Africa's fastest-growing remittance markets, where annual inflows exceed $5 billion USD.

Easier for the sender
Familiar interface(s)
Better reach for the banks
More volume flowing through the Xahau network

How Xahau Is Used

The exact technical mechanics are kept somewhat close to the chest - the parties involved understandably don't want to hand competitors a blueprint. What the announcement does confirm, though, is that Xahau is the settlement layer, and that Quantoz is the named stablecoin provider for the Euro leg of the transaction.

This is notable because Quantoz had already signaled its intentions for Xahau in November of last year:

EURQ Announcement From Quantoz

The stablecoin groundwork was laid ahead of time.

The Real Deal

This is not a 'coming soon' type of item.

It's a live, operational expansion of a service that was already working. This new deal upgrades it - larger partner, broader user base, more settlement volume.

Xahau is well-suited to this kind of use case.

Its hooks architecture is easily understood, and allows smart contracts to trigger inline with each payment, meaning compliance checks can happen automatically, attached to each account. That's a significant advantage in regulated financial services.

And ... with the AMM amendment on the horizon, Xahau's toolset for powering similar projects is only going to grow.

The End-User Experience

The original Coop Remit xApp put simplicity first - a streamlined way for end-users to send money home without navigating complex banking systems. The new TerraPay arrangement has the potential to make that experience even smoother, reaching senders through a variety of platforms that their money transmission partners already have in place.

For the Xahau community - developers, speculators, and crypto fans - this is the kind of real-world traction the ecosystem has been building toward. Interested parties will be watching closely to see how far this model can scale. X>