Nigeria Leads Africa in Stablecoin Transactions with $22B in 2023-2024

Nigeria leads Africa in stablecoin transactions at $22B between July 2023 and June 2024, accounting for 43% of the region's crypto activity. USDT holds an 88.5% market share, while USDC comes in second at 9.9%. The adoption of stablecoins is driven by faster cross-border settlements, reduced FX costs, and hedging against currency volatility. Local innovation and regulation are also key factors, with Nigeria exploring homegrown stablecoin options and regulators implementing well-structured programs.

Nigeria has emerged as the leading market for stablecoin transactions in Africa, according to a recent report by Yellow Card. Between July 2023 and June 2024, stablecoin transactions in Nigeria reached a staggering $22 billion, accounting for 43% of the region's overall crypto activity [1].

The report highlights that stablecoins have surpassed Bitcoin as the preferred digital asset in Africa, with 99% of Yellow Card's transactions involving stablecoins. USDT holds an 88.5% market share, while USDC follows closely at 9.9% [1]. The adoption of stablecoins is driven by several factors, including faster cross-border settlements, reduced FX costs, and hedging against currency volatility. Sharon Tum, Yellow Card’s Regional Manager for East Africa, attributes the trend to these advantages, stating that stablecoins provide a reliable means for both personal and business transactions [1].

The growth of stablecoins in Nigeria is also driven by local innovation. Roqqu recently listed the compliant Naira (cNGN), pegged 1:1 to the local currency, and other exchanges like Busha and Quidax have joined in [1]. Emmanuel Peter from Roqqu emphasizes the importance of grassroots adoption, noting that a currency's success depends on its acceptance by the people.

Regulatory efforts are also playing a significant role in the stablecoin ecosystem. Nigeria's Securities and Exchange Commission (SEC) has collaborated with Kenya’s School of Government, Busha, and Cambridge to roll out a digital assets course. The initiative aims to prepare leaders to manage digital assets with assurance [1]. This structured approach to regulation is crucial in addressing the challenges of slow payments, high remittance charges, and inadequate currency protection faced by African economies.

Meanwhile, the Bank of China is exploring stablecoin issuance in Hong Kong, with the Hong Kong Monetary Authority (HKMA) imposing strict requirements on reserve management, redemption guarantees, and client fund segregation [2]. The move follows the U.S.'s first federal stablecoin law and comes as major financial institutions and Chinese tech giants express interest in the stablecoin market. Vincent Chok, CEO of Hong Kong-based First Digital, highlights the efficiency of blockchain technology in reducing settlement times and intermediary fees, making stablecoins particularly appealing in emerging markets [2].

Despite the potential, Hong Kong regulators have urged caution, warning investors about market swings tied to licensing rumors. The Securities and Futures Commission (SFC) and the HKMA jointly cautioned investors to stay vigilant amidst the uncertainty surrounding preliminary plans or applications [2].

In conclusion, the adoption of stablecoins in Africa, particularly in Nigeria, is gaining momentum driven by both market forces and regulatory initiatives. As stablecoins offer solutions to longstanding financial challenges, their role in the continent's financial landscape is set to grow.

References:
[1] https://www.cryptotimes.io/2025/09/02/nigeria-tops-africa-in-stablecoin-transactions-at-22b/
[2] https://finance.yahoo.com/news/bank-china-stock-jumps-amid-110520361.html