Circle, the issuer of the popular USD-backed stablecoin USDC, has announced a strategic partnership with Onafriq, Africa’s largest payments gateway, to pilot stablecoin-based settlements across the continent. This collaboration aims to significantly reduce the high costs and inefficiencies associated with cross-border payments in Africa.
Currently, more than 80% of intra-African transactions rely on correspondent banks located outside the continent, with settlements made in foreign currencies such as the US dollar or euro. This outdated system results in an estimated $5 billion in annual fees, creating a substantial financial burden for businesses and individuals alike.
Onafriq’s extensive network connects over 500 wallets and 200 million bank accounts across 40 African countries, providing an ideal infrastructure to pilot USDC settlements.
“By integrating USDC, we aim to simplify financial transactions for institutions and individuals, reduce costs, and strengthen trust,”
said Dare Okoudjou, Onafriq’s founder and CEO.
Miriam Kiwan, Circle’s Vice President for the Middle East and Africa, emphasized the continent’s vast potential for digital asset innovation.
“Together, we aim to transform how money moves across borders, offering secure and transparent digital payment rails that enhance economic empowerment and connectivity,”
Kiwan said.
Data from Chainalysis reveals that by October 2024, stablecoin transactions accounted for approximately 43% of the total transaction volume in Sub-Saharan Africa. This surge is partly driven by currency devaluation, with the Nigerian naira experiencing a depreciation of over 100% in 2024 alone.
This partnership aligns with Circle’s broader global strategy to expand USDC adoption. On April 21, 2025, Circle launched the Circle Payments Network (CPN), a consortium of over 20 financial institutions-including World Remit, Yellow Card, and Fireblocks-designed to streamline global fund movement and settlement using stablecoins. The network also benefits from advisory support by major banks such as Standard Chartered and Deutsche Bank.
Circle partnered with Onafriq to lower Africa’s cross-border payment costs using USDC. This collaboration, following Circle’s in-principle approval in Abu Dhabi, aims to modernize Africa’s payment infrastructure with stablecoins for cheaper, more transparent, and inclusive financial transactions. This partnership could model more efficient global cross-border payments as stablecoin adoption in Africa grows.
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