Nigeria processed almost $22bn in stablecoin transactions between July 2023 and June 2024, making it the largest stablecoin market on the African continent, according to Yellow Card, the largest licensed stablecoin-based infrastructure provider on the continent.

Yellow Card operates in 20 countries across Africa and other emerging markets. Its latest report, Stablecoin Adoption in Emerging Markets, found that Nigeria accounted for the majority of the continent’s $22bn stablecoin transaction volume over the 12-month period, ahead of South Africa, Kenya and Ghana.

Stablecoins, which are typically pegged to fiat currencies such as the US dollar, are increasingly used by Nigerian businesses and individuals to hedge against currency fluctuations and facilitate international trade.

The Yellow Card report, as summarised by local media outlet Nairametrics, attributes Nigeria’s lead to ongoing foreign exchange shortages, persistent naira volatility, and rising demand for fast, dollar-backed cross-border transactions. 

According to Yellow Card, the global market capitalisation of stablecoins increased from $5bn in 2020 to $230bn by May 2025, with the most extensive adoption occurring in emerging markets. In Sub-Saharan Africa, stablecoins now represent 43% of all cryptocurrency transaction volumes, indicating broader regional uptake.

Recent geopolitical developments have accelerated this trend, Nairametrics writes. The United States introduced tariffs of up to 30% on exports from 47 African countries in August 2025, prompting traders and manufacturers to turn to dollar-backed stablecoins to maintain dollar-denominated value and trade continuity. Confidence in the asset class was further boosted by the passage of the GENIUS Act in early 2025, which established a regulatory framework for stablecoins in the US.

Yellow Card also reported increased adoption of stablecoins across key sectors, including oil and gas, manufacturing and banking. However, it warned of the risks associated with over-reliance on the dollar and highlighted ongoing challenges in digital infrastructure and financial literacy, particularly in rural areas.