Nigeria has emerged as Africa’s biggest stablecoin market, with nearly $22 billion worth of transactions recorded between July 2023 and June 2024.
This is according to a new report by Yellow Card, Africa’s leading stablecoin payments infrastructure provider.
The report highlights the transformative role of stablecoins across Africa, where they now account for 43% of all crypto transaction volumes in Sub-Saharan Africa.
The report noted that globally, stablecoins have grown from a market capitalization of $5 billion in 2020 to $230 billion as of May 2025.
But 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.
In Nigeria’s case, they have become a crucial tool for businesses and individuals struggling with FX scarcity, volatile naira-dollar rates, and unreliable banking systems.
According to Lasbery Chioma Oludimu, Vice President of Global Operations and Managing Director of Yellow Card Nigeria, “This 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.”
She added that stablecoins are now a fundamental tool for financial stability and efficiency, facilitating cross-border trade and aiding treasury management.
The report also noted that the United States’ decision to impose tariffs of up to 30% on exports from 47 African nations has accelerated the shift towards dollar-backed stablecoins in Africa.
Businesses and individuals are increasingly using them to bypass dollar scarcity, protect purchasing power, and assert monetary sovereignty.
The 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.
Somtochukwu Nsofor, Nigeria Country Manager at Yellow Card, noted that stablecoins hold strong promise in oil and gas, manufacturing, and banking. 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.
The SEC’s “Crypto Smart, Nigeria Strong” initiative aims to engage developers in co-creating a framework for stablecoin regulations.
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.
This framework will allow digital asset innovation to serve real-world economic activity, beyond speculation.
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.
This model, according to Yellow Card, could provide a roadmap for other emerging markets facing similar financial system bottlenecks.
