Stablecoin issuer Circle has partnered with Onafriq, Africa’s largest payments gateway, to reduce the high cost of cross-border payments across the continent using USDC.
According to a press release shared with Cointelegraph, Circle aims to pilot USDC (USDC) settlements within Onafriq’s vast network, which connects over 500 wallets and 200 million bank accounts in more than 40 countries.
“By integrating USDC, we aim to simplify financial transactions for institutions and individuals, reduce costs and strengthen trust,” Onafriq founder and CEO Dare Okoudjou said.
He added that the integration of USDC will simplify transactions and boost trust in digital financial services.
Currently, over 80% of intra-African transactions are routed through correspondent banks outside the continent and settled in foreign currencies like the US dollar or euro. This results in approximately $5 billion in fees annually.
Related: Circle files for Initial Public Offering planned for April
Africa has huge potential for stablecoins
Miriam Kiwan, the vice president at Circle responsible for the Middle East and Africa, said Africa holds tremendous potential for digital asset innovation, particularly in the adoption of stablecoins for cross-border payments.
“Together, we aim to transform how money moves across borders, offering secure and transparent digital payment rails that enhance economic empowerment and connectivity,” Kiwan said.
By October 2024, stablecoin transactions accounted for approximately 43% of the Sub-Saharan African region’s total transaction volume, according to Chainalysis.
At the time, Eric Jardine, cybercrimes research lead at Chainalysis, associated the rise in stablecoin transaction volume in the region with currency devaluation.
The Nigerian naira has been the worst-performing African currency, depreciating by over 100% in 2024.
Related: Circle executive denies claims of seeking US banking license
Circle pushes for global expansion
The collaboration also comes amid Circle’s global strategy of expanding USDC adoption.
On April 21, 2025, Circle launched the Circle Payments Network (CPN), a consortium of financial institutions aiming to streamline global fund movement and settlement using stablecoins.
The network already includes over 20 partners, such as World Remit, Yellow Card, and Fireblocks, with advisory support from major banks like Standard Chartered and Deutsche Bank.
The initiative is designed to address inefficiencies in traditional cross-border payments. CPN will support various use cases, including remittances, payroll, treasury and invoice payments.
On April 29, the firm also received in-principle approval from the Financial Services Regulatory Authority of the Abu Dhabi Global Market.
The approval allows Circle to operate as a regulated money services provider in the United Arab Emirates.
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