In a groundbreaking collaboration, Circle, the stablecoin issuer behind USD Coin (USDC), has partnered with Onafriq, Africa’s largest payment gateway, to tackle the significant costs associated with cross-border payments across the continent. Announced through a press release shared with Cointelegraph, this partnership aims to pilot USDC settlements within Onafriq’s expansive network, which connects over 500 wallets and 200 million bank accounts across more than 40 countries.
Onafriq’s founder and CEO, Dare Okoudjou, emphasized the importance of this integration, stating, “By integrating USDC, we aim to simplify financial transactions for institutions and individuals, reduce costs, and strengthen trust.” This initiative comes in response to the current reality where over 80% of intra-African transactions are processed through correspondent banks outside the continent, resulting in approximately $5 billion in fees annually.
The Potential of Stablecoins in Africa
Miriam Kiwan, Circle’s Vice President responsible for the Middle East and Africa, highlighted Africa’s tremendous potential for digital asset innovation, particularly in adopting stablecoins for cross-border payments. Kiwan stated, “Together, we aim to transform how money moves across borders, offering secure and transparent digital payment rails that enhance economic empowerment and connectivity.” As of October 2024, stablecoin transactions accounted for about 43% of Sub-Saharan Africa’s total transaction volume, with the rise in adoption linked to ongoing currency devaluation issues across the region, particularly affecting currencies like the Nigerian naira.
Circle’s Global Expansion Strategy
This collaboration also dovetails with Circle’s broader strategy to enhance global USDC adoption. In April 2025, Circle launched the Circle Payments Network (CPN), a consortium of financial institutions aimed at streamlining global fund movement using stablecoins. With over 20 partners, including World Remit, Yellow Card, and Fireblocks, the network addresses inefficiencies in traditional cross-border payments, facilitating diverse use cases such as remittances, payroll, treasury, and invoice payments.
Additionally, Circle recently achieved a significant milestone by obtaining in-principle approval from the Financial Services Regulatory Authority of the Abu Dhabi Global Market, allowing them to operate as a regulated money services provider in the UAE. This further solidifies Circle’s commitment to expanding its footprint and enhancing the efficacy of digital payments globally.
As digital financial services continue to evolve, partnerships like that of Circle and Onafriq are essential in transforming the way money is moved and trusted across borders, particularly in regions with high transaction costs and limited banking infrastructure.
