Luno, a regulated digital asset platform serving more than 15 million customers across Africa and Southeast Asia, has acquired GTXN, a Kenyan cross-border payments provider and licensed fund manager. The transaction was confirmed for an undisclosed sum and positions GTXN as Luno's cross-border payments arm. The deal brings GTXN's licensed collection and payout infrastructure into Luno's existing operations and supports the company's expanding business and institutional services.
The Challenge of Cross-Border Payments
Most cross-border payments still rely on correspondent banking networks where money moves through chains of intermediary banks. In developing markets those chains are often two or three intermediaries deep, adding settlement delays, currency conversions and fees. Each intermediary also runs its own compliance and sanctions screening, while exchange rate markups often hide the true cost of a transfer.
Sub-Saharan Africa remains the world's most expensive remittance region, with an average cost of 7.9 percent to send 200 dollars. That is more than double the United Nations Sustainable Development Goal target of 3 percent by 2030. Africa's cross-border payments market was valued at 329 billion dollars in 2025 and is projected to reach 1 trillion dollars by 2035, but supporting infrastructure has lagged.
What GTXN Adds to Luno
GTXN was founded in Nairobi in 2022 and licensed by Kenya's Capital Markets Authority as a fund manager in May 2024. Its business spans foreign exchange and treasury advisory, digital treasury operations and securitisation services for corporates and institutions in East Africa. Under Luno, GTXN operates as the group's cross-border payments arm and provides a single regulated route for moving money between developed and emerging markets.
For business clients the flow becomes simpler because money moves in and out through one provider over Luno-owned rails and settles against Luno's liquidity. The deal follows Luno's September 2026 launch of instant stablecoin minting for corporate clients with Meridian, a US-regulated clearinghouse. Luno also secured a Class F Digital Asset Business licence from the Bermuda Monetary Authority in August 2026 to support OTC trading, spot markets and wallet infrastructure.
Leadership and Market Context
Dan Kleinbaum has been named chief executive officer of GTXN. He co-founded Beyonic, a mobile-money platform operating across seven African markets that was acquired by Onafriq in 2020, and later built a foreign exchange and cross-border treasury business in East Africa. His appointment brings more than a decade of emerging market payments infrastructure experience to the combined operation.
Luno is not alone in targeting Africa's cross-border payments opportunity. Yellow Card raised 40 million dollars in August 2026 from investors including Standard Chartered and Sony's innovation fund, while Onafriq has scaled USDC settlement across more than 40 African markets. Traditional banks such as Absa have also entered partnerships to lower fees and speed up settlement across multiple countries.
Regulatory Considerations
The acquisition arrives while South Africa's regulatory framework for cross-border crypto activity is still being shaped. Draft rules published by National Treasury and the South African Reserve Bank in August 2026 would effectively prohibit South African businesses from using crypto assets or stablecoins for cross-border payments, with comments open until 30 September 2026. Luno has joined a coalition of regulated providers and more than 5,300 individuals urging that licensed innovation remain accessible.
For enterprises moving money between developed and emerging markets, the GTXN acquisition promises fewer intermediaries, clearer pricing and quicker settlement through one regulated provider. The deal reflects Luno's broader ambition to build infrastructure that responds to enterprise demand in markets where correspondent banking has remained slow and costly. Its ultimate impact will depend in part on South Africa's final cross-border crypto rules, expected to become clearer after the consultation closes at the end of September.