"Nigeria Leads Africa\u2019s Stablecoin Market With $22 Billion in Transactions"

" Nigeria Leads Africa\u2019s Stablecoin Market With $22 Billion in Transactions \r\n\r\nNigeria has emerged as Africa\u2019s biggest stablecoin market, with nearly $22 billion worth of transactions recorded between July 2023 and June 2024.\r\n\r\nThis is according to a new report by Yellow Card, Africa\u2019s leading stablecoin payments infrastructure provider.\r\n\r\nThe report, titled Stablecoin Adoption in Emerging Markets, which was released on Tuesday, highlights the transformative role of stablecoins across Africa, where they now account for 43% of all crypto transaction volumes in Sub-Saharan Africa.\r\n\r\n \u201cNigeria stands out as the continent\u2019s largest stablecoin market, with nearly $22 billion in transactions between July 2023 and June 2024, followed by South Africa and other rapidly growing markets such as Kenya and Ghana,\u201d \u00a0the report stated.\r\n\r\n Global market\u00a0 \r\n\r\nAccording to the report, globally, stablecoins have grown from a market capitalization of $5 billion in 2020 to $230 billion as of May 2025.\r\n\r\nBut their real impact, Yellow Card notes, is in emerging markets where they are driving innovation in cross-border trade, treasury management, inflation hedging, and financial inclusion.\r\n\r\nIn Nigeria\u2019s case, they have become a crucial tool for businesses and individuals struggling with FX scarcity, volatile naira-dollar rates, and unreliable banking systems.\r\n\r\n \u201cThis report highlights the significant role of stablecoins in emerging markets. It demonstrates how stablecoins are crucial for financial inclusion and economic empowerment, especially where traditional banking is unreliable,\u201d \u00a0said Vice President of Global Operations and Managing Director of Yellow Card Nigeria, Lasbery Chioma Oludimu.\r\n\r\n \u201cFrom facilitating cross-border trade to aiding treasury management, stablecoins are now a fundamental tool for financial stability and efficiency,\u201d \u00a0she added.\r\n\r\n Impact of global trade disruption\u00a0 \r\n\r\nThe report noted that the United States\u2019 decision in August 2025 to impose tariffs of up to 30% on exports from 47 African nations has accelerated the shift towards dollar-backed stablecoins in Africa.\r\n\r\nBusinesses and individuals are increasingly using them to bypass dollar scarcity, protect purchasing power, and assert monetary sovereignty.\r\n\r\nThe passage of the GENIUS Act in the U.S. earlier this year, which created a regulatory framework for stablecoins, has also indirectly boosted confidence in African adoption.\r\n \r\n \t Nigeria Country Manager at Yellow Card, Somtochukwu Nsofor, noted that stablecoins hold strong promise in oil and gas, manufacturing, and banking. \r\n \t By enabling fast, low-cost cross-border payments and reducing exposure to FX risks, they are emerging as vital tools for business resilience. However, he cautioned that challenges such as dollarization risks, rural digital literacy gaps, and infrastructure constraints still stand in the way of wider adoption. \r\n \t Meanwhile, African fintechs are racing to embed stablecoins into mobile money platforms, payroll, and trade finance solutions, building systems that are faster, cheaper, and more inclusive than legacy banking. \r\n \t This model, according to Yellow Card, could provide a roadmap for other emerging markets facing similar financial system bottlenecks. \r\n \r\n What you should know\u00a0 \r\n\r\nRecognizing the growing trend in the adoption of stablecoin in the country, Nigeria\u2019s Securities and Exchange Commission (SEC)\u00a0 recently announced plans \u00a0to launch what it called \u2018Crypto Smart, Nigeria Strong\u2019 initiative, aimed at engaging developers in co-creating a framework for stablecoin regulations.\r\n\r\nAccording to the Director-General of\u202f SEC, Emomotimi Agama, the commission is also actively exploring a framework for Naira-pegged stablecoins, which will be fully backed by verifiable reserves, audited regularly by independent custodians, and used for cross-border trade, payments, and programmable finance.\r\n\r\nThis framework will allow digital asset innovation to serve real-world economic activity, beyond speculation.\r\n<div class=\"ai-viewport-1\" data-insertion-position=\"prepend\" data-selector=\".ai-insert-19-68204423\" data-insertion-no-dbg=\"\" data-code=\"PGRpdiBjbGFzcz0nY29kZS1ibG9jayBjb2RlLWJsb2NrLTE5JyBzdHlsZT0nbWFyZ2luOiA4cHggMDsgY2xlYXI6IGJvdGg7Jz4KPCEtLSBBY3RpdmUgLS0+CjwhLS0KPGRpdiBhbGlnbj0iY2VudGVyIj48YSBocmVmPSJodHRwczovL2phaXpiYW5rcGxjLmNvbS8iIHRhcmdldD0iX2JsYW5rIiByZWw9Im5vb3BlbmVyIG5vcmVmZXJyZXIiPjxpbWcgY2xhc3M9ImFsaWduY2VudGVyIHdwLWltYWdlLTE3NzAzMyBzaXplLW1lZGl1bSIgc3JjPSJodHRwczovL2kuaWJiLmNvL2JkdlFjRGcvTkFJUkFNRVRSSUNTLUNSRUFUSVZFLUZPUi1SRU5FV0FMLTEuanBnIiBhbHQ9IkphaXogYmFuayIgLz48L2E+PC9kaXY+LS0+CjwvZGl2Pgo=\" data-block=\"19\">\r\n \r\n "

"Nigeria Leads Africa\u2019s Stablecoin Market With $22 Billion in Transactions"

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