Stablecoins challenge banks in Africa’s US$124bn remittance market

Stablecoins are increasingly challenging traditional banking institutions for control over Africa’s US$124 billion remittance market. Driven by practical financial needs such as inflation protection and faster cross-border payments, cryptocurrency adoption is growing rapidly across the continent. Africa is currently ranked as the world’s fastest-growing cryptocurrency region, with on-chain value reaching over US$205 billion between July 2024 and June 2025.

Nigeria and South Africa are central to this shift. Nigeria accounts for an estimated US$92.1 billion of the total on-chain value and ranks third globally for overall cryptocurrency adoption. South Africa has reached ninth place globally, ranking third for cross-border activity. Other notable growth is occurring in Kenya, Ethiopia, and Ghana.

Tether’s USDT is playing a significant role in this expansion, providing a dollar-pegged alternative for users facing local currency depreciation or foreign exchange shortages. While Tether is expanding its footprint, indigenous African fintech companies are also developing infrastructure to integrate stablecoins into local trading and payment solutions, particularly in markets with established mobile money cultures like Kenya.