Africa Emerges as Stablecoin Innovation Epicenter, Reshaping Global Finance

Stablecoin fundraising accounted for 25% of all cryptocurrency-related investment deals in the third quarter of 2025, signaling a growing preference for stable digital assets in the broader crypto ecosystem. This trend reflects the increasing adoption of stablecoins in cross-border transactions, remittances, and decentralized finance (DeFi) applications, particularly in emerging markets where traditional financial infrastructure remains underdeveloped. The rise in stablecoin activity is driven by their ability to provide stable value, reduce transaction costs, and enable faster settlements compared to traditional banking systems.

One of the key use cases for stablecoins has been in remittance services, particularly in Africa, where they have become a critical tool for financial inclusion. According to a recent Chainalysis report, stablecoins accounted for 43% of crypto transaction volume in Sub-Saharan Africa in 2024, a figure that highlights their role in everyday financial activities. In economies with high inflation and unstable local currencies, stablecoins are being used as a means of preserving value, facilitating cross-border payments, and enabling small businesses to access global markets without relying on volatile fiat currencies. This has led to a shift in how African entrepreneurs and consumers engage with digital money, with many preferring stablecoins over traditional remittance channels.

Lisk, a blockchain platform focused on decentralized applications, has positioned itself as a key enabler of this transformation. The company's Head of Investments, Gideon Greaves, emphasized that Africa is becoming a central hub for Web3 innovation, where blockchain solutions are being built to solve real-world problems rather than chasing speculative gains. “African founders are building payment rails, supply chain transparency, and financial access tools because they have to,” Greaves stated, highlighting the continent’s unique entrepreneurial spirit and necessity-driven innovation. This contrasts sharply with the speculative focus of many Western Web3 projects, where tokens are often launched without a clear use case or user base.

The rise of stablecoins in Africa also reflects broader trends in global crypto adoption. While Bitcoin and other volatile cryptocurrencies remain popular among investors, stablecoins have gained traction as a more practical tool for day-to-day transactions. In particular, stablecoins like USDC and USDT have been widely adopted for remittances due to their deep liquidity and ease of conversion into local currencies. This has enabled families and businesses to send and receive money across borders with minimal fees and faster settlement times, a significant improvement over traditional banking systems that often take days and charge high fees.

From a regulatory standpoint, stablecoins are also beginning to gain more attention as governments and central banks recognize their potential to reshape financial systems. In India, for example, discussions are ongoing regarding the legal and tax treatment of stablecoins, with regulatory bodies like the Financial Intelligence Unit-India (FIU-IND) working to establish compliance frameworks. Meanwhile, in other parts of the world, regulators are exploring the role of central bank digital currencies (CBDCs) as an alternative to stablecoins. However, given the global nature of stablecoin transactions, many industry experts argue that private stablecoins are better positioned to facilitate cross-border payments in the near term, especially in regions with limited access to traditional banking services.

The continued growth of stablecoin fundraising in Q3 underscores a broader shift in how capital is being allocated within the crypto space. Investors are increasingly favoring stablecoins and stablecoin-based infrastructure projects over speculative tokens and protocols. This trend is supported by the growing number of startups and development companies that are building tools to facilitate stablecoin transactions, including payment gateways, on/off-ramp services, and decentralized finance platforms. As more users and businesses adopt stablecoins for real-world applications, the demand for secure, scalable, and compliant infrastructure is expected to rise, further driving investment in this sector.

Africa Will Be Web3's Biggest Growth Market, Says Lisk's ... [https://beincrypto.com/africa-web3-lisk-ethsafari/]

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