How stablecoins are reshaping global finance, unlocking faster, cheaper, and more accessible cross-border transactions across Africa.
In today’s digital-first economy, the movement of money across borders remains frustratingly slow and expensive, especially for businesses and individuals in emerging markets. But what if the solution to this long-standing challenge is already here, quietly reshaping the landscape?
In the latest episode of Virtual Core Corner, powered by Verto, George Antonio, Product Manager at Verto, joined host Tessa Adamu to explore one of the most debated innovations in fintech: stablecoins.
So, are stablecoins just another crypto fad, or are they here to stay?
What Exactly Are Stablecoins?
According to George, stablecoins are simply digital tokens on a blockchain that are pegged to traditional currencies like the US Dollar. Think of them as “crypto dollars”, combining the price stability of fiat with the speed and global reach of blockchain technology.
The concept took off when companies like Tether issued dollar-backed tokens that allowed users to move money quickly, cheaply, and 24/7. The market has exploded from $11 billion to over $250 billion in circulation in just a few years, with monthly growth rates around 3–5%.
Solving the Cross-Border Puzzle
Cross-border payments have long been bottlenecked by outdated systems like SWIFT and correspondent banking—protocols that haven’t evolved much since the 1970s. Local payment systems like NIP (Nigeria), Faster Payments (UK), and SEPA Instant (EU) are fast and cheap within their respective regions, but they don't talk to each other.
That’s where stablecoins step in.
George explains how stablecoins can act as a global bridge: allowing someone in Nigeria to send naira over NIP to a liquidity provider, who converts it into a stablecoin like USDT. That stablecoin is then sent across the blockchain to the UK, where it's converted into GBP and delivered over Faster Payments, all within minutes.
This model not only increases efficiency but also lowers costs, reduces settlement delays, and bypasses banking hours. For cross-border fintech like Verto, it also provides liquidity flexibility, allowing them to settle in any currency, at any time.
Who’s Benefiting Today?
While the technology has global appeal, stablecoins are already making a tangible impact in Africa and Latin America, where access to reliable banking and US dollars is limited.
For consumers, stablecoins offer a hedge against volatile local currencies. All that’s needed is a smartphone and an internet connection to access a blockchain wallet.
For remittance markets, they offer faster, cheaper alternatives to traditional money transfer services.
For businesses and financial institutions, stablecoins enable seamless cross-border settlements, especially outside traditional banking hours.
George notes that institutions are increasingly settling US dollar transactions via stablecoins because of their speed, accessibility, and reliability.
Buzzword or Backbone of the Future?
The verdict? Stablecoins may have started as a niche innovation, but they are quickly becoming the plumbing of the global financial system, particularly in underserved markets where they fill real, immediate gaps.
For Africa, this could be a transformative shift, opening new pathways for trade, remittances, and financial inclusion. Stay tuned to the Unlocking Africa blog for more insights into how digital innovation is unlocking new opportunities across the continent.
Also, access Verto’s comprehensive compliance guide for businesses navigating African markets.
Access the Comprehensive Guide
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Did you miss my previous episode where I discus From Concept to Capital: Designing Smarter and Simpler Blended Finance Funds for Africa? Make sure to check it out!
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Connect with us at www.etkgroup.co.uk or reach out via email at info@etkgroup.co.uk