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Stablecoin issuer Circle has announced a strategic partnership with Onafriq, the continent’s leading payments gateway. The collaboration aims to leverage Circle’s USD Coin (USDC) to significantly reduce the exorbitant costs associated with cross-border payments across Africa.
Currently, a staggering 80% of intra-African financial flows are routed through correspondent banks located outside the continent, with settlements predominantly occurring in foreign currencies like the US dollar and the euro. This inefficient system results in approximately $5 billion in fees annually, creating a substantial barrier to seamless trade and economic integration.
USDC Integration Poised to Slash Transaction Costs and Enhance Trust
Dare Okoudjou, founder and CEO of Onafriq, emphasized the transformative potential of this integration. “By integrating USDC, we aim to simplify financial transactions for institutions and individuals, reduce costs and strengthen trust,” he stated. He further highlighted that the adoption of USDC will streamline transaction processes and bolster confidence in digital financial services across the continent.
Miriam Kiwan, Vice President at Circle for the Middle East and Africa, echoed this sentiment, underscoring Africa’s immense potential for digital asset innovation, particularly in the realm of stablecoins for cross-border payments. “Together, we aim to transform how money moves across borders, offering secure and transparent digital payment rails that enhance economic empowerment and connectivity,” Kiwan asserted.
Africa Emerges as a Key Region for Stablecoin Adoption
Data from Chainalysis indicates a growing trend of stablecoin usage in the region. By October 2024, stablecoin transactions accounted for approximately 43% of Sub-Saharan Africa’s total transaction volume. Eric Jardine, cybercrimes research lead at Chainalysis, attributed this surge to currency devaluation, citing the Nigerian naira’s dramatic depreciation as a prime example.
This partnership aligns with Circle’s broader global expansion strategy. Notably, on April 21, 2025, Circle launched the Circle Payments Network (CPN), a consortium of financial institutions dedicated to streamlining global fund movement and settlement using stablecoins. With over 20 partners, including World Remit and Yellow Card, and advisory support from major banks like Standard Chartered and Deutsche Bank, the CPN aims to address the inefficiencies inherent in traditional cross-border payment systems.
Furthermore, Circle recently received in-principle approval to operate as a regulated money services provider in Abu Dhabi, underscoring its commitment to expanding its global footprint and the adoption of USDC. The collaboration with Onafriq represents a significant step towards realizing the potential of stablecoins to foster more efficient and cost-effective financial interactions within Africa and beyond.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Coinbase, Circle, and Paxos Consider U.S. Bank Charters as Stablecoin Oversight Tightens
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