Nigeria, South Africa Lead Africa’s Multi-Billion Dollar Stablecoin Surge

Stablecoins are cementing their place in Africa’s financial landscape as businesses and individuals turn to the dollar-pegged digital assets for cheaper payments and protection from volatile currencies, according to a new report from Yellow Card, a pan-African crypto platform.

In sub-Saharan Africa, stablecoins accounted for 43% of crypto transaction volume in 2024, with Nigeria leading the market at nearly USD 22 B in transactions between July 2023 and June 2024. South Africa has also seen rapid uptake, with monthly volumes rising 50% since October 2023, overtaking bitcoin as the most widely used cryptocurrency in the country.

“Stablecoin adoption is accelerating among businesses for three clear reasons: faster cross-border settlements, reduced FX costs, and hedging against currency volatility,” said Sharon Tum, Yellow Card’s regional manager for East Africa.

“Many companies are using stablecoins to pay suppliers and receive international payments in minutes instead of days, often at a fraction of traditional banking fees.”

The growing use is being driven not only by individuals sending remittances or saving in dollars, but also by companies deploying stablecoins for supply-chain payments and payroll. Yellow Card’s data shows corporate transactions using stablecoins rose 25% in 2024, with 30% of its customers now using them for business operations.

Kenya, where inflation and currency depreciation have eroded household spending power, is emerging as another growth market. “The country’s strong mobile money infrastructure, especially M-Pesa, allows for easy stablecoin integration,” said Peter Mwangi, Yellow Card’s country manager in Kenya.

“A tech-savvy youth population also uses stablecoins for lower remittance fees and protection against currency volatility, making them practical financial tools.” he added.

Globally, the sector has expanded sharply over the past five years. The total market capitalisation of stablecoins climbed from USD 5 B at the start of 2020 to USD 230 B by May 2025, despite a setback in 2022 following the collapse of Terra’s UST token. Stablecoin transaction value reached USD 15.6 T this year, exceeding annual volumes handled by Visa and Mastercard, Yellow Card said.

On Yellow Card’s platform, stablecoins accounted for 99% of transactions in 2023, with Tether’s USDT dominating at 88.5% of trades. USDC accounted for nearly 10%, while PayPal’s PYUSD registered negligible activity.

Regulators across Africa are still weighing how to respond to the rapid growth. Governments are considering new rules on anti-money laundering and terrorist financing while also exploring tax regimes to capture revenue from digital asset activity.

Featured Image Credits: KuCoin