Founders are racing one another to build solutions that allow crypto to work like real money. This has led to the rise of stablecoin off-ramp solutions—apps that allow individuals and businesses to convert dollar-backed stablecoins USDT and USDC into local African currencies—seeking to replace peer-to-peer (P2P) crypto exchanges, which are often targets for scams.
Some interesting use cases I’ve seen include crypto cards that allow users to hold stablecoins and spend, transfer, or withdraw like regular money. Stablecoins are also being tested in social commerce and other everyday use cases.
Yet, when people speak of stablecoin use cases in emerging markets like Africa, we talk about them like they’re still on the horizon. The reality is, many of these use cases are already here, just not evenly spread.
In emerging markets today, stablecoins have two major uses: for cross-border payments and as a hedge against inflation. Somewhere in the evolution of their adoption, there might be a third leg in lending.
Cross-border payments and remittances
In many emerging markets, sending money across borders is still slow, expensive, and unreliable due to intermediaries. Banks and traditional money transfer services often come with delays and high transaction fees. Stablecoins are helping to fix that.
“If you have a relative abroad, they can send you USDT,” said Uzochukwu Mbamalu, CEO and co-founder of Palremit, a crypto and stablecoin off-ramp platform. “You get the value immediately in your local bank account. That’s one of the major use cases, and we are seeing people use stablecoins for that right now.”
Compared to just five years ago, there are now more off-ramp solutions like Palremit that have made these kinds of cross-border transactions more seamless and popular. There are two major reasons for this burst of activity.
First, regulators like the Securities and Exchange Commission (SEC) are now paying close attention to cryptocurrencies. The SEC has classified digital assets—including cryptocurrencies—as securities, and introduced a ₦500 million ($323,000) capital requirement for any exchange that wants to operate in the country. To avoid this regulatory pressure, founders are sticking to the stablecoin side of the market, which doesn’t yet have clear rules. Stablecoins are digital representations of fiat currencies and, under Nigerian law, are not classified as “virtual assets.”
The second reason is that though the infrastructure that connects stablecoins to mainstream traditional finance still lags behind, transactions in Sub-Saharan Africa (SSA) are increasing.
What makes stablecoins cheaper for remittance isn’t just that they’re digital. It’s how they’re built. Most stablecoins are built to run on Layer-1 (L1) blockchains like Ethereum. These are powerful networks, but they often get congested. When too many people use them at once, transactions slow down and fees rise. To solve this, developers created Layer-2 (L2) blockchains built on top of the main Layer-1 networks to help process transactions faster at lower costs.
Think of Ethereum like a busy country where everyone uses the same currency, Ether. People come in with tasks, like sending money or using an app, and they all queue up at one shop. That shop gets overwhelmed. Processing takes longer, and costs go up. L2s are like extra shops built nearby to handle the overflow. They take care of some of the tasks and later send a summary back to the main shop. This keeps things moving without clogging the original system. Platforms like Celo and Optimism are examples of these Layer-2 networks.
Stablecoin transactions can now be routed through these Layer-2 blockchains, allowing people in countries like Nigeria, Kenya, or Ghana to send and receive money almost instantly and with far lower fees than through banks or traditional remittance services—without intermediaries.
As stablecoin off-ramp platforms adopt Layer-2 solutions, stablecoin transfers are becoming not just faster, but practical and affordable for everyday users. That’s a big part of why they’re gaining traction in cross-border use cases.
Hedging against inflation
Inflation is a constant problem across many African countries. When local currencies lose value, people look for ways to protect what they have. Stablecoins offer one way to do that.
Dollar-backed stablecoins like USDT and USDC keep their value tied to the US dollar. This helps people avoid the drops in value that happen with local currencies. Moving savings or business funds into stablecoins is, for many, a way to hold on to value in a system that doesn’t always offer that stability.
Stablecoins provide an easier pathway to hold dollar value, especially in markets where direct access to US dollars is limited. Unlike traditional finance, stablecoins can move freely across borders without waiting for approval from Western institutions.
Local traders and platforms now play the role of liquidity providers, helping people convert in and out of stablecoins without needing to go through foreign banks.
Lending and Real World Asset (RWA) tokenisation
While stablecoin lending in Africa is still in its infancy, there’s a future where it can play a role in token-backed lending. One tool that could enable this is real-world asset (RWA) tokenisation. RWA tokenisation means turning things like land, homes, or vehicles into digital tokens that can be used as collateral.
In Nigeria, projects like Asset Chain, a blockchain infrastructure company, are building in the RWA tokenisation space. A world where RWAs become more integrated in the physical world could increase tokenised lending with stablecoins—perhaps local currency-backed stablecoins—baked into these payment systems. This system will allow people to borrow money using stablecoins, backed by real assets they already own.
Tokenisation will allow people to own a small part of a valuable asset—like a house, car, or even financial instruments like tokenised stocks and bonds—instead of needing to buy the whole thing. For example, instead of needing millions to invest in property, users can get started with just a few hundred dollars by buying a digital token. If you own a property, you can also tokenise your own asset to raise money. This means more people, not just the wealthy, can get loans on the back of what they own, which is also verifiable on the blockchain.
Centrifuge, a popular tokenised asset marketplace, also provides credit, providing an alternative pathway to financial inclusion in emerging markets. Globally, the tokenisation market has grown by 380% over the last three years and is worth $24 billion in 2025. While this market is still nascent in emerging markets simply for the lack of infrastructure, perceived effort to scale, and lack of education, it could become a boon to solve the credit problem underbanked individuals and businesses face in the region.
Getting the regulation right will also be key for many countries in the region. Tokenised assets are similar to securities—tokenised securities. Several frameworks in Singapore, the United States, and the United Arab Emirates regulate them as such, provided they represent equity, debt, or investment units. Hong Kong classifies tokenised assets as traditional investment products with a digital wrapper.
A regulatory framework that puts proper verification systems in place will prevent stifling and unlock a wider range of safe, accessible credit and investment opportunities.
How governments can participate
Stablecoins aren’t just useful for startups and private users. As adoption grows, governments could also explore how they could use them too.
In countries where government cash transfers are slow, expensive, or prone to leakages, stablecoins offer a faster option. Governments could deliver benefits, pensions, or subsidies directly to citizens without relying on layers of intermediaries.
“In the future, I think governments are going to use stablecoins mostly for universal basic income and income distribution,” said Mbamalu. “The idea is to avoid a fractional reserve setup by making sure these coins are properly backed. With the right regulation, governments in emerging markets can adopt them with more confidence.”
The way stablecoins works—fast payments, digital records, and easy transfers—makes them a possible fit for government programmes. This could mean faster and cheaper delivery of cash assistance, benefits, or stimulus payments.
But while the idea is promising, stablecoins also raise big questions about how money works. In economic principles, money has three main characteristics: it should be a way to exchange value, a way to measure value, and a way to store value. Stablecoins, especially those backed by the stable US dollar and properly collateralised, appear to fit all three roles. This makes it increasingly realistic for stablecoins to function as money.
However, Teju Adeyinka, a product manager working in fintech and Web3, notes that if more people start using dollar-backed stablecoins for real spending, it could slowly pull local economies toward the US dollar. This kind of dollarisation could expose countries to US economic shocks and make it harder for central banks to control their own monetary policy.
It is a trade-off that must be acknowledged and managed carefully.
The education and usability gap
For all their potential, stablecoins are still held back by a huge knowledge gap. Many non-crypto users are unfamiliar with how to use stablecoin wallets, differentiate between blockchains, or even understand basic risks. Copying wallet addresses or figuring out the right blockchain network for a transaction can lead to irreversible mistakes.
While stablecoin off-ramps are working to close this gap with simpler interfaces and better user experiences, there’s still a long way to go. The original pitch of crypto—”be your own bank”—may not appeal to users in emerging markets who prefer to outsource some of those self-management burdens.
Stablecoins, in their current form, are best suited for the underbanked—people who have access to financial services but seek more efficient, cost-effective alternatives. They are not a silver bullet for the unbanked. Traditional finance still matters and will continue to play a strong role in how money moves across Africa.
When layered with thoughtful regulation, improved education, and accessible design, stablecoins could become part of a financial future that includes more people, provides more utility opportunities in adjacent spaces, and offers more control over how money is used.
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