USDC Enters Africa‘s Payment Landscape
In a move that could significantly impact the African financial landscape, Circle, the issuer of the USD-pegged stablecoin USDC, has partnered with Onafriq, Africa‘s largest payments gateway. The collaboration aims to leverage USDC‘s stability and efficiency to reduce the high costs associated with cross-border payments across the continent.
According to a press release, Circle will pilot USDC settlements within Onafriq’s extensive network, connecting over 500 wallets and 200 million bank accounts in more than 40 African countries. This integration is expected to simplify financial transactions for both individuals and institutions, ultimately driving down costs and fostering greater trust in digital financial services.
Addressing Africa‘s Payment Challenges
The current system for intra-African transactions is largely reliant on correspondent banks outside the continent, often settled in foreign currencies like the US dollar or euro. This reliance results in substantial fees, estimated at approximately $5 billion annually. This underscores the need for innovative solutions that streamline cross-border payments within Africa.
“By integrating USDC, we aim to simplify financial transactions for institutions and individuals, reduce costs and strengthen trust,” said Dare Okoudjou, Founder and CEO of Onafriq.
The integration of USDC could offer a viable alternative, facilitating more efficient and cost-effective transactions within Africa. This aligns with Circle‘s broader strategy to expand USDC‘s global reach, targeting regions where traditional financial systems face challenges.
Stablecoin Adoption on the Rise in Africa
Africa is emerging as a fertile ground for stablecoin adoption. By October 2024, stablecoin transactions accounted for approximately 43% of the Sub-Saharan African region’s total transaction volume, according to Chainalysis. This surge in adoption can be attributed to factors such as currency devaluation, particularly in countries like Nigeria, where the naira experienced a significant depreciation.
Circle‘s Global Expansion Strategy
This partnership with Onafriq is part of Circle‘s broader initiative to promote global adoption of USDC. In April 2025, Circle launched the Circle Payments Network (CPN), a consortium of financial institutions dedicated to streamlining global fund movement and settlement using stablecoins. The network boasts over 20 partners, including World Remit, Yellow Card, and Fireblocks, and enjoys advisory support from major banks like Standard Chartered and Deutsche Bank.
CPN’s aim is to tackle inefficiencies in traditional cross-border payments by supporting a range of use cases, including remittances, payroll, treasury management, and invoice payments. This commitment to global expansion was further solidified in April 2025 when Circle received in-principle approval from the Financial Services Regulatory Authority of the Abu Dhabi Global Market, enabling the company to operate as a regulated money services provider in the United Arab Emirates.
The collaboration between Circle and Onafriq represents a significant step towards fostering financial inclusion and reducing payment costs in Africa. With USDC‘s potential to simplify and expedite transactions, this partnership could pave the way for a more efficient and cost-effective financial ecosystem within the continent.
