Yellow Card, Africa’s leading stablecoin infrastructure provider, has recently published a report shedding light on the growing significance of stablecoins in emerging markets, particularly in sub-Saharan Africa. The report emphasizes the expanding utility of stablecoins beyond international payments and settlements, with platforms like Visa and Mastercard now facilitating stablecoin transactions. Kenya, in particular, has emerged as one of the African countries experiencing substantial growth in stablecoin adoption.
According to the report, stablecoins accounted for a significant portion of total crypto transaction volume in sub-Saharan Africa, reaching 43% in 2024. Nigeria, known as Africa’s largest stablecoin market, recorded close to $22 billion in transactions between July 2023 and June 2024. Meanwhile, South Africa witnessed a remarkable 50% month-over-month growth since October 2023, surpassing bitcoin as the country’s most popular cryptocurrency.
Sharon Tum, Yellow Card’s Regional Manager for East Africa, notes that stablecoin adoption in the region is transitioning from mere hype to practical utility. Businesses are increasingly turning to stablecoins for faster cross-border settlements, reduced foreign exchange costs, and protection against currency volatility. Many companies are leveraging stablecoins to facilitate quick payments to suppliers and receive international payments within minutes, ultimately improving cash flow and enhancing cross-border trade efficiency.
The report also highlights the significant growth of the stablecoin market cap over the past few years. Starting at $5 billion in early 2020, the market cap surged to $181.7 billion in March 2022 due to heightened demand for digital assets. Despite a temporary setback in 2022 following the collapse of Terra’s UST stablecoin, the market cap rebounded to $119.1 billion in 2023. By 2024, the market cap had grown to $161.2 billion, reaching $230 billion by May 2025. This year, the transaction value of stablecoins surpassed $15.6 trillion, exceeding both Visa and Mastercard in transaction volume.
Yellow Card’s platform data reveals that stablecoins constituted over 90% of total transaction volume in 2022 and 2023, now representing 99% of the company’s business. USDT remains the dominant stablecoin, accounting for 88.5% of transaction share and 85.4% of USD volume. USDC follows with 9.9% of transaction share and 14.5% of USD volume, while PYUSD lags behind with 0.9% of transaction share and 0.1% of USD volume. The analysis indicates a growing trend where 30% of stablecoin users are leveraging these digital assets for business operations, in addition to personal needs like remittances and savings.
As stablecoin adoption continues to rise, the range of use cases is expanding. Corporate transactions using stablecoins saw a 25% increase in 2024, particularly in cross-border payments and supply chain settlements. Beyond payments, businesses are increasingly utilizing stablecoins for payroll processing, capitalizing on the efficiency and cost-effectiveness these digital assets offer.
Peter Mwangi, Yellow Card’s Country Manager in Kenya, highlights the growing adoption of stablecoins in the country, driven by economic challenges such as inflation and currency depreciation. Kenya’s robust mobile money infrastructure, notably M-Pesa, facilitates seamless integration of stablecoins, while the tech-savvy youth population leverages these digital assets for lower remittance fees and protection against currency fluctuations.
As stablecoin adoption gains momentum, these digital assets are poised to play a pivotal role in both local and global financial systems. African governments are currently in the process of formulating regulatory frameworks for digital assets, with varying approaches to anti-money laundering and counter-financing of terrorism rules. Additionally, governments are exploring strategies to tax digital assets and generate new revenue streams.
For further insights and details, the comprehensive Impact Report from Yellow Card can be accessed here.
