Stablecoins Surge as Africa’s Corporates Embrace Fast, Low-Cost Financial Rails

African businesses are increasingly turning to stablecoins like USDT and USDC to streamline operations, bypassing sluggish banks and legacy systems for dollar-based transactions, supplier payments, and payroll. This shift, detailed in a TechCabal report, highlights stablecoins’ growing utility in addressing real-world financial challenges across the continent.

Tether’s USDT, issued by the world’s most profitable stablecoin firm with $4.9 billion in Q2 2025 profits, dominates adoption. In Nigeria, $22 billion in stablecoin transactions flowed between mid-2023 and mid-2024, driven by naira volatility and FX shortages. Businesses use stablecoins to hedge against currency depreciation, settle cross-border payments, and access global services, with instant settlement (T+0) and fees as low as 2.5% compared to 6.49% for traditional remittances.

Startups like Nigeria’s Shiga Digital and Cryptonia are at the forefront, offering stablecoin-based rails for oil and gas firms, fintechs, and SMEs. Shiga, for instance, supports payroll and international settlements, while Cryptonia’s CEO Oluwatimilehin Oluwasanmi notes users leverage stablecoins for quick P2P transfers and global digital access. Globally, corporate adoption is up 25%, with energy and merchant payments leading multi-million-dollar transactions.

MoneyGram’s September 2025 partnership with Crossmint to integrate stablecoin payments marks a legacy player’s pivot, aiming to cut settlement times from T+5 to T+0 and challenge competitors like Western Union. Yet, fragmented blockchain infrastructure—spanning Ethereum, Solana, and others—creates operational hurdles, requiring costly middleware for interoperability.

The U.S. GENIUS Act, passed in July 2025, mandates full-reserve backing and transparency, boosting corporate confidence but raising banking fears of deposit flight. In Africa, where 43% of crypto transactions are stablecoin-driven, regulators face pressure to clarify rules as fintechs outpace cautious banks, particularly in South Africa’s progressive framework. With stablecoins processing $8.9 trillion in H1 2025, their role as Africa’s financial plumbing is undeniable, promising efficiency but demanding robust oversight to balance innovation and stability.