Africa’s stablecoin conversation is shifting—from speculation and retail crypto use to serious institutional treasury infrastructure.
In Nairobi on Tuesday, Onafriq, the African fintech operating across 40 countries, announced a partnership with Conduit, a cross-border payments firm that leverages blockchain-based dollar tokens. The alliance signals a deeper evolution in how major African payment networks manage liquidity, settle cross-border transactions, and reduce reliance on traditional correspondent banking rails.
Rather than launching a consumer-facing crypto product, Onafriq is adopting stablecoins such as United States dollar coin (USDC) as backend financial plumbing—reshaping how it funds accounts, rebalances treasury holdings, and makes international payouts.
A Treasury Play, Not a Token Play
Announced in Nairobi, the agreement enables Onafriq to use stablecoins to fund accounts, rebalance treasury holdings, and make payouts in markets where traditional bank transfers can take several days.
The first application will centre on treasury operations. Conduit will help Onafriq convert USDC into US dollars through off-ramp channels as both companies assess how stablecoins can strengthen global liquidity management.
“Onafriq is a global poster child for the impact a fintech can have in a developing market, offering fast, reliable, and accessible money movement in Africa, which has not been served well by traditional banking options,” said Kirill Gertman, founder and CEO of Conduit.
Onafriq’s Group Chief Product and Innovation Officer, Luke Khohere, emphasized operational efficiency:
“Conduit’s infrastructure will help us move toward streamlining our global treasury management through stablecoins and drive faster payouts for our customers.”
The emphasis is clear: this is about infrastructure optimization—not consumer crypto adoption.
Why This Matters for Africa’s Payment Backbone
Founded in 2010, Onafriq operates as a critical intermediary connecting local payment systems across the continent. It handles cross-border transfers, collections, card services, agent banking, and foreign exchange for banks, mobile money operators, and merchants. While the company declined to disclose its annual payment volume, it manages growing cross-border flows across 40 African markets.
The adoption of stablecoins introduces a new liquidity lever for an ecosystem long constrained by:
- Limited correspondent banking relationships
- Foreign exchange bottlenecks
- Multi-layered SWIFT routing fees
- Settlement delays across jurisdictions
Traditional cross-border transfers routed through the SWIFT network often pass through several intermediary banks, each charging fees and adding opacity to the transaction chain. Stablecoin-based settlement reduces that complexity by enabling a single provider fee and clearer tracking of funds during processing.
For payment companies operating at continental scale, these differences can materially affect cost structures and payout timelines.
Institutional Stablecoin Adoption Gains Momentum
Onafriq’s partnership with Conduit adds to a broader trend: African fintechs increasingly using stablecoins as backend settlement rails.
Stablecoins—digital tokens designed to maintain parity with the US dollar—are gaining traction in markets where access to foreign exchange is limited and correspondent banking links are thin. However, most African firms are deploying them as infrastructure tools rather than consumer products.
Conduit, which launched its stablecoin-based cross-border product in 2023, says demand across the continent is rising sharply. The company reported that the number of African customers using its platform increased 80% between the third and fourth quarters of 2025.
That growth suggests stablecoins are evolving into a treasury optimization instrument for African payment providers—not just a speculative asset class.
Africa’s Search for SWIFT Alternatives
Globally, payment companies are actively seeking alternatives to SWIFT-based transfers, which often involve multiple intermediaries, compliance checks, and delays.
Stablecoin networks promise near-real-time settlement while reducing reliance on correspondent banks. However, they still require local banking partners to facilitate on- and off-ramps into domestic financial systems.
For African fintechs, the model offers a hybrid solution: blockchain rails for speed and cost efficiency, paired with traditional banking channels for regulatory compliance and fiat settlement.
Onafriq’s move signals growing institutional confidence in this hybrid model.
A Strategic Liquidity Advantage
Beyond cost reduction, liquidity management is emerging as the real strategic play.
Cross-border payment networks often hold balances across multiple currencies and jurisdictions. Rebalancing treasury positions through traditional channels can take days, tying up capital and introducing FX risk exposure.
By using USDC as a bridge asset and converting through off-ramp channels, Onafriq may be able to:
- Reduce idle capital across corridors
- Shorten treasury rebalancing cycles
- Improve payout speed for partners
- Lower operational friction
As African cross-border volumes continue to grow, treasury agility could become a defining competitive advantage.
The Bigger Picture
Onafriq’s partnership with Conduit underscores a shift in Africa’s fintech narrative: stablecoins are no longer fringe tools. They are becoming part of the institutional infrastructure stack for major payment networks.
If successful, the model could accelerate a broader move among African payment companies toward blockchain-based backend settlement—especially in corridors where correspondent banking remains slow and expensive.
The stablecoin era in Africa may not begin with consumer wallets. It may begin in treasury departments.
