Regulated euro e-money settlement for inward remittances to Ethiopia

Last reviewed 26 August 2026Written by José Antonio Lázaro EspilaReviewed by Bharath Chari

Status: Live / launched
Announced: 6 May 2026
Corridor: Europe → Ethiopia
Use case: Inward remittance settlement
Cross-border network: TerraPay
Domestic financial institution: Cooperative Bank of Oromia
Regulated euro e-money: Quantoz Payments
Settlement ledger: Xahau
Regulatory approval: Approved by Ethiopia’s central bank for inward remittance flows, according to TerraPay’s announcement
INFTF role: Developed in collaboration with INFTF. INFTF and TerraPay worked with Ethiopian financial authorities on the regulatory and technical framework.

Why this corridor.

Ethiopia is one of the largest remittance-receiving countries in Africa, with annual inbound flows exceeding USD 5 billion, according to TerraPay’s announcement. The launch coincides with a reform of Ethiopia’s foreign exchange regime which, according to the same announcement, is expected to increase transparency and efficiency in cross-border financial flows. The corridor lets euro-denominated remittances from Europe settle between institutions and reach Ethiopia’s domestic banking system.

Who does what.

Cross-border payment network
TerraPay
Provides the cross-border payments network that carries euro-denominated remittances from Europe.
Domestic financial institution
Cooperative Bank of Oromia
Provides last-mile banking reach in Ethiopia, with over 700 branches nationwide according to TerraPay’s announcement. Recipients are paid in ETB through the domestic bank.
Regulated euro e-money
Quantoz Payments
Provides the regulated euro-denominated settlement asset. Quantoz Payments is an electronic money institution supervised by De Nederlandsche Bank. The partners’ announcements call this “regulated digital euro”; it is private e-money, not the digital euro the ECB is preparing, which has not been issued.
Settlement ledger
Xahau
Records the institutional transfer of the settlement asset.
Architecture and coordination
INFTF
Worked with TerraPay and Ethiopian financial authorities on the regulatory and technical framework for inward-remittance settlement.

Ambar Sur and Bharath Chari standing side by side in front of a wall sign reading “Stay hungry, stay humble”. — Ambar Sur, CEO and founder of TerraPay, with Bharath Chari of INFTF, May 2026.

From sending market to ETB payout.

sending marketEuro-denominated remittances are sent from Europe.
TerraPayTerraPay provides the cross-border payments network.
regulated EURThe regulated euro-denominated settlement asset, provided by Quantoz Payments.
Xahau settlementXahau records the institutional transfer of the settlement asset.
CoopbankCooperative Bank of Oromia provides last-mile banking reach in Ethiopia.
ETB payoutThe recipient remains in local currency – no foreign digital currency to hold.

sending market → TerraPay → regulated EUR → Xahau settlement → Coopbank → ETB payout

Senders use TerraPay’s cross-border network. Between the institutions, value settles in regulated euro e-money from Quantoz Payments, with Xahau recording the transfer. Cooperative Bank of Oromia connects the settlement leg to domestic banking and payout.

TerraPay describes Xahau as designed for financial-grade use cases, with account-level smart functionality and deterministic transaction execution. The participating institutions remain responsible for the regulated financial services around it.

“This initiative uses blockchain technology strictly as a settlement layer. It does not involve cryptocurrency, token issuance, or retail digital asset trading. All participating institutions operate under their respective regulatory licenses and oversight frameworks.”

TerraPay announcement, note to editors, 6 May 2026 ↗

INFTF’s contribution.

INFTF and TerraPay worked with Ethiopian financial authorities to establish the regulatory and technical framework for blockchain-based inward-remittance settlement, and INFTF contributed to aligning the programme with inclusive finance and national development objectives, according to TerraPay’s announcement. Ethiopia’s central bank has approved the use of this settlement infrastructure for inward remittance flows, according to the same announcement.

“This launch represents an important first step in a broader effort to modernize cross-border settlement in support of national development goals.”

Bharath Chari, INFTF, in TerraPay’s announcement, 6 May 2026 ↗

What the model demonstrates.

a ledger can sit inside existing regulated financial operations
the recipient does not need to adopt a foreign digital currency
regulated digital money can be used for settlement
domestic banking reach remains essential
corridor design is institutional, not merely technical
the architecture can be replicated conceptually to other corridors, subject to regulation and partners

Background: the direct model announced in 2024.

INFTF’s remittance work with Cooperative Bank of Oromia began in October 2024, when INFTF and Coopbank announced a Xahau-based remittance service for the Ethiopian diaspora delivered through a wallet application: the sender holds a euro-denominated digital asset and sends it directly, and Coopbank pays out in ETB.

The 2026 corridor runs alongside that direct model. The sender uses TerraPay’s network and settlement in regulated euro e-money happens between institutions. Both models remain open. The direct model depends on a regulated euro instrument being broadly available on Xahau – which is why EURQ on Xahau matters to it.