Stablecoins Gain Traction as Infrastructure for Cross-Border Payments in Africa

Stablecoins are gaining traction in Africa, particularly in Kenya, as a reliable and efficient means of transferring funds across borders. Unlike cryptocurrencies that are often used for trading and speculation, stablecoins are designed to maintain a stable value pegged to a fiat currency like the US dollar.

Companies such as Movement, Yellow Card, and Hesab are exploring the use of stablecoins as infrastructure behind financial services, allowing users to send and receive money without relying on traditional banking systems. This approach is gaining momentum in Kenya, where mobile money platforms like M-Pesa already provide a consumer interface for financial transactions.

According to Movement's CEO Torab Torabi, blockchains will eventually become as invisible as the networks that carry phone calls, allowing users to focus on using financial services without worrying about the underlying technology. He envisions a future where stablecoins are used seamlessly behind the scenes, much like mobile money is today.

Kenya's Virtual Asset Service Providers Act has provided clarity for the market, setting out regulations for stablecoin issuers and providing a clear framework for operators to build durable infrastructure and bank relationships. The use of stablecoins in Kenya has already reached significant volumes, with Chainanalysis estimating that Sub-Saharan Africa received over $205 billion in on-chain value between July 2024 and June 2025.