The Rise of Stablecoin Payments Between Africa and Asia

Introduction

A quiet financial revolution is unfolding across two of the world’s most dynamic continents. Stablecoin cryptocurrencies pegged to stable assets like the US dollar are rapidly transforming how money moves between Africa and Asia, bypassing traditional banking systems that have long been slow, expensive, and inaccessible to millions.

For decades, businesses and individuals sending money between these regions have endured a frustrating gauntlet of intermediaries, each taking their cut. A payment from a factory in Guangzhou to a distributor in Accra might pass through three or four correspondent banks, taking three to five days to settle while incurring fees that can exceed 5% of the transaction value. Foreign exchange spreads add another layer of cost, and the entire process operates on banker’s hours, closed on weekends and holidays when business doesn’t stop.

This inefficiency has real consequences. Small and medium enterprises, which form the backbone of both continents’ economies, often lack access to affordable trade finance. Entrepreneurs miss time-sensitive opportunities because payments move too slowly. Families wait days for urgently needed funds. The traditional financial system, built for a different era, struggles to serve the needs of two regions experiencing rapid economic growth and deepening trade ties.

Enter stablecoins. These digital currencies combine the speed and accessibility of cryptocurrency with the stability of traditional fiat currencies. Unlike volatile cryptocurrencies like Bitcoin, stablecoins maintain a consistent value, typically one stablecoin equals one US dollar, making them practical for everyday transactions. They operate on blockchain networks that never sleep, enabling instant settlement at a fraction of the cost of traditional systems. No correspondent banks. No multi-day delays. No geographical barriers.

What makes this moment particularly significant is that adoption is being driven by necessity rather than speculation. While much of the early cryptocurrency narrative focused on investment and trading, the Africa-Asia stablecoin corridor is about solving concrete problems: getting paid faster, preserving purchasing power, accessing global markets, and building businesses without being constrained by legacy financial infrastructure.

The Scale of Transformation

The numbers tell a compelling story. In 2024, stablecoins accounted for a staggering share of financial activity across both continents. Over $54 billion in stablecoin transactions were recorded in Sub-Saharan Africa between July 2023 and June 2024, while Asia Pacific processed $519 billion in stablecoin flows during 2024. What makes these figures even more remarkable is their relative economic impact: stablecoin flows accounted for 6.7% of GDP across Africa and the Middle East combined.

This isn’t speculative trading; this is real economic activity. From merchants in Lagos to traders in China, stablecoins are becoming the backbone of cross-border commerce between these regions.

Why Stablecoins Are Winning

Traditional cross-border payments between Africa and Asia face formidable obstacles. According to the International Monetary Fund, only 12% of intra-African payments are fully processed on the continent, with most being routed through Europe or the United States, adding layers of cost and delay.

Stablecoins offer a radically different approach. They enable near-instantaneous settlement, dramatically lower fees, and operate 24/7 without requiring correspondent banking relationships. For businesses engaged in trade between Africa and Asia, this means liquidity that was previously tied up for days can now move in minutes.

Companies like Conduit are building infrastructure specifically for this purpose, with their platform seeing 16-fold growth in transaction volume in 2024 and surpassing $10 billion in annualized volume across Latin America, Africa, and Asia. Their success reflects a broader trend: businesses are voting with their wallets for faster, cheaper payment rails.

How stablecoin payments work

Mint/on-ramp: Sender converts fiat to a stablecoin (e.g., USDC/USDT) via an exchange, custodian, or fiat-on-ramp provided by a fintech partner.
On-chain transfer: The stablecoin is sent across a blockchain (Ethereum, Solana, Polygon, or layer-2/optimised rails). Settlement is near-instant.
Off-ramp: The receiver converts the stablecoin into local fiat via a local exchange, payment partner, or bank partner, or accepts the token in their wallet and uses it for local on-chain payments.
Liquidity / FX layers: Market makers or custodians provide liquidity and conversion services between local currencies and stablecoins to ensure smooth off-ramp flows.

The net effect: faster settlement (seconds to minutes), much lower fees than SWIFT wires or cash-based remittances, and continuous rails that work across time zones

Why now? Key drivers pushing adoption between Africa and Asia

Trade growth and supply-chain needs
Trade between African markets and Asian manufacturers (notably China, India, and Southeast Asian exporters) has grown rapidly. The need for faster, lower-cost settlement for goods, especially low-margin imports like electronics, textiles, and inputs, makes stablecoins attractive because they bypass multi-bank correspondent routes.
High domestic FX friction in Africa
Many African businesses face expensive bank wires, slow USD settlement, and scarce access to reliable FX. Stablecoins allow businesses to hold value pegged to USD (or other currencies) and transfer it directly on-chain with far lower fees and near-instant settlement. IMF and industry reports document the growth of stablecoin flows and their use in cross-border settlement.
Retail crypto adoption and local use cases
Retail and SME crypto use in Sub-Saharan Africa has been rising both for value preservation in inflationary environments and for commerce, creating an ecosystem that supports on/off-ramps and payment rails. Chainalysis and other trackers show strong retail crypto activity in the region.
Asian innovation and push for alternative rails
Asia, from private fintechs to state-linked initiatives, is experimenting with stablecoins and tokenized FX (including yuan-linked tokens overseas). These initiatives expand the set of available rails that African businesses can access when trading with Asian counterparts

The Asian Connection

Asia’s role in this ecosystem is particularly crucial. Nearly half of Asian respondents cite market expansion as their top driver for stablecoin adoption, with the technology becoming essential infrastructure for trade-heavy industries where fast liquidity and reliable settlement are mission-critical.

Singapore, Hong Kong, and Japan have emerged as regulatory pioneers. Singapore’s Monetary Authority finalized its stablecoin framework in August 2023, requiring 100% reserve backing, while Hong Kong’s Stablecoins Bill became effective in August 2025. This regulatory clarity is providing the confidence needed for institutional adoption.

Southeast Asia, in particular, is seeing explosive growth. Over 20% of residents in some markets now hold cryptocurrency, with stablecoins increasingly powering remittances, purchases, savings, and payroll across the region. The Philippines, Vietnam, and Indonesia are leading this transformation, driven by necessity as much as innovation.

Why Africa ↔ Asia is a perfect fit for stablecoins

Diaspora and remittance volumes: Large Asian diasporas in African markets and vice versa create steady remittance flows where lower fees and speed matter.
SME trade pain points: Small importers in Africa often struggle with high wire costs, blocked credit lines, and multi-day settlement delays. Stablecoins reduce payment friction and working-capital drag.
Mobile + crypto literacy: Many African markets already use mobile money at scale; combining mobile wallets with stablecoin rails is a logical step that retains mobile convenience while lowering FX friction.
Regulatory openness & innovation: Several countries (notably Kenya) have moved toward clearer regulation for crypto service providers and stablecoin licensing, which encourages compliant fintech solutions to offer tokenised rails.

These dynamics are not hypothetical: reports and industry analyses show growing retail and business crypto activity across African markets and increasing institutional interest in stablecoin rails.

Key benefits for businesses and remitters

Lower costs — Stablecoin rails can dramatically reduce fees versus traditional remittances and bank wires, improving margins for traders and lowering the cost of sending money home.
Speed & certainty — Settlements happen 24/7, reducing payment windows from days to minutes and improving cash-flow predictability for importers and exporters.
Continuous liquidity access — When paired with local liquidity providers and on/off-ramps, stablecoins provide “always-on” access to USD-pegged liquidity without waiting for bank cut-offs.
Programmability — Smart contracts enable conditional payments (escrow, milestone releases), useful in B2B trade and supplier financing.
Financial inclusion — Small merchants and individuals who previously lacked reliable FX bridges can access cross-border settlement via mobile wallets and fintech rails.

Challenges and Considerations

This transformation isn’t without concerns. The dominance of US dollar-backed stablecoins raises questions about monetary sovereignty. The spread of stablecoins could shrink seigniorage revenue, the profit governments earn from issuing currency in sub-Saharan Africa, with part of this revenue potentially flowing to the US Treasury.

There are also regulatory challenges. While some Asian markets have established clear frameworks, many African nations are still developing their approaches. The risk of capital flight, reduced tax collection, and weakened local currencies are legitimate concerns that policymakers must address.

Yet the momentum appears unstoppable. African banks, once wary of cryptocurrencies, are now showing a marked shift in attitude, with several major banks working on issuing and using both local currency and US dollar stablecoins.

Stablecoins are not a silver bullet. Businesses must manage:

Regulatory uncertainty: Jurisdictions vary widely in policy. Some countries restrict crypto payments, others embrace carefully regulated on/off-ramps. Firms must work with compliant providers and understand local rules to avoid enforcement risk. International institutions (IMF, central banks) are actively studying policy frameworks for stablecoins.
Counterparty and liquidity risk: Not all stablecoins are equal. US dollar-backed tokens (USDC, USDT) dominate flows, but liquidity and redemption mechanisms differ. Choose partners that provide guaranteed liquidity and transparent reserves.
On/off-ramp friction: Converting from local fiat to stablecoins (and back) requires trusted custodians, KYC/AML procedures, and sometimes multiple steps, making a reliable payments partner essential. Yogupay and similar platforms focus on compliant on/off-ramp infrastructure.
Operational and settlement risks: Wallet custody, private key management, and smart contract vulnerabilities are operational realities. Firms should use institutional-grade custody and audited contracts.

The Infrastructure Behind the Movement

What’s enabling this surge isn’t just blockchain technology; it’s the emergence of sophisticated payment infrastructure. Startups like Bridge, which was acquired by Stripe for $1.1 billion just two years after its founding, facilitate stablecoin payments in Europe, the US, and Asia while serving most African payment companies.

The infrastructure is maturing rapidly. By the end of the first quarter of 2025, stablecoin volume used for remittances reached 3% of the $200 trillion in total global cross-border payments. Even traditional financial giants are taking notice. Western Union launched its own stablecoin, USDPT, positioning itself at the front line of a contest for Africa’s $95 billion remittance market.

Infrastructure & standards needed for scale

To reach mainstream scale, the ecosystem needs:

Robust, compliant on/off-ramps — regulated gateways that handle KYC/AML, fiat rails, and liquidity aggregation.
Interoperability and stablecoin choice — common standards and sufficient on-chain liquidity across chains (e.g., ERC-20 USDC/USDT, wrapped assets) to ensure counterparties can transact without friction.
Bank-crypto bridges & partnerships — collaborations between banks, payment processors, and crypto firms to provide instant settlement into local bank accounts when needed.
Regulatory clarity — consistent, business-friendly frameworks that protect consumers and allow innovation. Recent multilateral activity (regional payment platforms, central bank research) shows momentum toward workable solutions.

Where Yogupay fits — practical value for African ↔ Asian flows

Platforms like Yogupay are positioned as the practical infrastructure layer businesses need. Key value propositions:

End-to-end on/off-ramps and APIs: Yogupay offers APIs that let merchants and treasuries convert local fiat to major stablecoins (like USDC/USDT), send them cross-border, and convert at the destination, removing manual steps and reducing settlement time. This helps importers pay Asian suppliers and merchants who receive international e-commerce revenues.
Compliance-first approach: Yogupay highlights KYC/AML and regulatory compliance, which reduces the legal and counterparty risk for businesses using stablecoins for trade and remittances. For many African firms, working with a compliant provider is a deciding factor.
Treasury tools & FX management: Well-designed platforms provide FX conversion, on-chain liquidity management, and dashboards that let CFOs monitor FX exposure and settlements, turning the theoretical benefits of stablecoins into operational reality. Yogupay’s content and product offerings emphasize these treasury features.
Use-case templates: Yogupay publishes resources for importers, startups, and e-commerce sellers on how to integrate stablecoins, lowering the technical barrier to entry.

Practical checklist: How an African business can start using stablecoins for Asia trade

Map the flow: Who pays whom, in what currency, and who bears FX risk?
Choose the stablecoin and chain: USDC/USDT are the dominant rails; select one with good liquidity in your corridors.
Pick a compliant payments partner: Look for KYC/AML, fiat liquidity, and reputable custody (Yogupay is one example of such a partner).
Test small pilot invoices: Run a few small payments end-to-end to confirm timings, fees, and reconciliation.
Update contracts: Explicitly state settlement currency (stablecoin), timing, and dispute mechanisms in supplier contracts.
Train finance staff: Wallet management, reconciliation of on-chain transactions, and AML reporting are new workflows.
Monitor regulations: Assign someone to track central bank guidance and tax implications in both countries.

The Path Forward: Opportunities and Imperatives

Several key developments will shape the next phase of this transformation:

Regulatory Harmonization

The current patchwork of regulations creates friction. A business operating across multiple African and Asian markets must navigate different compliance requirements in each jurisdiction. The emergence of regional regulatory frameworks similar to the European Union’s Markets in Crypto-Assets (MiCA) regulation could dramatically accelerate adoption by providing legal clarity and reducing compliance costs. Forward-thinking regulators have an opportunity to collaborate across borders, creating standards that protect consumers while fostering innovation.

Local Currency Stablecoins

While US dollar stablecoins dominate today, the next frontier may be stablecoins pegged to regional currencies, Nigerian naira, Kenyan shilling, Thai baht, or Vietnamese dong. These could address concerns about dollarization while still providing the speed and efficiency advantages of blockchain-based payments. Several African banks are already exploring this possibility, recognizing that offering local currency stablecoins could help them remain competitive rather than being disintermediated entirely.

Integration with Traditional Finance:

The future likely isn’t a wholesale replacement of traditional banking but rather a hybrid model. We’re already seeing banks partner with crypto payment processors, exchanges offering both fiat and stablecoin services, and payment companies building bridges between the two worlds. The institutions that thrive will be those that embrace stablecoins as complementary infrastructure rather than viewing them as existential threats.

Financial Literacy and Education

For stablecoins to reach their full potential, millions of people need to understand how to use them safely. This means education about wallet security, understanding the differences between various stablecoins, recognizing scams, and knowing how to convert between digital and traditional currencies. Both governments and private sector players have a role to play in building this knowledge base.

Infrastructure Development

While stablecoin technology is impressive, its utility depends on supporting infrastructure, mobile internet access, smartphone penetration, reliable electricity, and user-friendly applications. As these fundamentals improve across both continents, the addressable market for stablecoin payments expands exponentially. We’re seeing a virtuous cycle where demand for digital payments drives infrastructure investment, which in turn enables more digital payment adoption.

Conclusion

The financial bridge between Africa and Asia is being rebuilt, and it’s being built on blockchain rails. But this is about more than just technology. It represents a fundamental reimagining of how economic value should move in the 21st century.

For too long, cross-border payments have been designed around the convenience of financial institutions rather than the needs of users. Stablecoins flip this paradigm. They put the user first: the entrepreneur who needs to pay suppliers quickly, the worker sending money home to family, the investor accessing new markets, the trader hedging against currency volatility.

The rise of stablecoin payments between Africa and Asia is a testament to what happens when technology meets genuine need. It’s a story of innovation driven not by venture capital hype or speculative mania, but by real people solving real problems. As trade between these continents continues to grow, with bilateral trade between China and Africa alone exceeding $250 billion annually, the payment rails connecting them must evolve.

Traditional financial institutions face a choice: adapt or become obsolete. The most forward-thinking banks are already making their move, recognizing that stablecoins represent an opportunity to expand their services rather than a threat to their existence. Those who hesitate may find themselves watching from the sidelines as a new generation of financial infrastructure passes them by.

For Africa and Asia, the implications extend beyond efficiency gains. Accessible, affordable cross-border payments can unlock entrepreneurship, strengthen trade relationships, enhance financial inclusion, and accelerate economic development. When a small business owner in Uganda can seamlessly transact with a manufacturer in Malaysia, when a skilled professional in the Philippines can easily work for a startup in Kenya, when barriers to economic participation fall away, that’s when we’ll see the true transformative potential of this technology.

The revolution isn’t coming. It’s already here. The only question is how quickly the rest of the financial world will catch up.

Curious how stablecoin rails could cut your import costs or speed supplier payments? Book a consultation with a regulated cross-border payments partner, Yogupay