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, 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.
“Nigeria stands out as the continent’s 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,” the report stated.
Global market
According to the report, 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.
“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,” said Vice President of Global Operations and Managing Director of Yellow Card Nigeria, Lasbery Chioma Oludimu.
“From facilitating cross-border trade to aiding treasury management, stablecoins are now a fundamental tool for financial stability and efficiency,” she added.
Impact of global trade disruption
The report noted that the United States’ 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.
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.
- Nigeria Country Manager at Yellow Card, Somtochukwu Nsofor, 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.
- 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.
- This model, according to Yellow Card, could provide a roadmap for other emerging markets facing similar financial system bottlenecks.
What you should know
Recognizing the growing trend in the adoption of stablecoin in the country, Nigeria’s Securities and Exchange Commission (SEC) recently announced plans to launch what it called ‘Crypto Smart, Nigeria Strong’ initiative, aimed at engaging developers in co-creating a framework for stablecoin regulations.
According to the Director-General of 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.
This framework will allow digital asset innovation to serve real-world economic activity, beyond speculation.
