The development highlights how millions of Nigerians are increasingly turning to cryptocurrencies and stablecoins as alternatives to conventional financial channels amid persistent economic uncertainties and difficulties accessing foreign currency.

According to industry data, Nigeria now ranks among the most active cryptocurrency markets globally, with digital assets becoming a mainstream tool for remittances, savings, payments and international transfers.

The country’s growing influence in the digital asset ecosystem comes despite years of regulatory uncertainty and crackdowns on some cryptocurrency platforms.

Yet, market activity has remained resilient, driven largely by retail users seeking faster and cheaper alternatives to traditional financial services.

Meanwhile, data from blockchain analytics firm Chainalysis shows that Nigeria recorded approximately $59 billion in cryptocurrency transactions between July 2023 and June 2024, placing it among the world’s largest crypto markets.

Around 85 per cent of those transactions were valued below $1 million, indicating strong participation by individuals and small businesses rather than institutional investors.

Industry operators argue that cryptocurrencies are increasingly being used for practical purposes rather than speculation.

Moyo Sodipo, chief operating officer and co-founder of Busha, said users are beginning to recognise the everyday utility of digital assets.

“People are starting to see the real-world utility of cryptocurrency, especially in day-to-day transactions,” he said.

He further noted that crypto is increasingly being used for bill payments, mobile airtime purchases and retail transactions.

Stablecoins which are pegged to major currencies such as the US dollar, have emerged as a key driver of adoption.

Chainalysis estimates that stablecoins account for roughly 40 per cent of Nigeria’s crypto inflows, making the country the largest stablecoin market in Sub-Saharan Africa.

The growing use of stablecoins has been linked to persistent foreign exchange shortages and the need by businesses and individuals to preserve value in the face of currency volatility.

Chris Maurice, chief executive officer of Yellow Card, said stablecoins provide businesses with access to dollar-denominated assets when conventional channels are constrained.

“About 70 per cent of African countries are facing an FX shortage, and businesses are struggling to get access to the dollars they need to operate,” Maurice said.

Prior to retail payments, digital assets are also becoming increasingly important for remittances and cross-border trade. Industry stakeholders say cryptocurrency-based transfers offer faster settlement times and lower transaction costs compared to traditional channels.

The surge in adoption comes as Nigeria gradually moves towards a more structured regulatory framework for digital assets.

The country has shifted from an era of restrictions to one focused on licensing and oversight, with authorities seeking to balance innovation with consumer protection.

Experts believe that regulatory clarity, combined with growing digital literacy and widespread smartphone adoption, could further accelerate cryptocurrency usage across the country.

However, they also caution that issues relating to consumer protection, fraud prevention, taxation and market stability will remain critical as the sector continues to expand.

For policymakers, Nigeria’s leadership in global crypto transfers presents both an opportunity and a challenge: harnessing innovation to deepen financial inclusion while ensuring adequate safeguards in an increasingly digital financial system.

This is in contrast to previous times when many financial institutions avoided conversations about digital assets.

Chris Maurice, the CEO of Yellow Card Financial Inc., a pan-African cryptocurrency exchange, revealed this trend during an interview. He noted, “We’re having conversations with banks and other major financial institutions that a couple of months ago, they didn’t want to hear about crypto, they didn’t want to talk about it. Now these guys are calling us, they’re interested. They want to understand how do they get into the space. I think obviously part of it is the Trump effect.”

The recent inauguration of U.S. President Donald Trump, who is seen as crypto-friendly, is believed to be a stimulus for this regulatory change. Maurice, speaking about this development in the U.S. and how it could inspire a quicker pace of regulation across Africa, said: 

“With the US moving this way, I think you’ll see a lot more speed from various governments in Africa in terms of achieving regulatory clarity. This gives us more confidence that over the next year or so, we’ll see sweeping regulatory changes across the continent,” he stated.

Currently, most African nations lack comprehensive laws governing cryptocurrencies, with central banks closely monitoring activities over concerns like capital flight and currency stability. 

High-profile cases, such as the arrest of a Binance executive in Nigeria last year, stress the challenges faced in the region. Nonetheless, Maurice noted a noticeable transition in perception since Trump’s election, with governments beginning to explore regulatory frameworks for the crypto market.

Africa has already accelerated in cryptocurrency adoption. Nigeria, for instance, ranks first globally in stablecoin usage and second in overall crypto adoption. 

Other African countries like South Africa, Kenya, and Ghana are also among the top 20 globally. Maurice credited this adoption to the practicality of cryptocurrencies for international remittances and as a tool for small and medium-sized businesses using stablecoins for transactions.

“The question now is whether the continent can sustain this momentum and keep its lead,” Yellow Card CEO stated regarding the cryptocurrency adoption rate. He added that ongoing discussions in countries like Nigeria, Kenya, Rwanda, and Ghana provide the necessary confidence for companies to invest and expand.

Yellow Card, which operates in 20 African countries, traded over $3 billion in cryptocurrency last year. The company has not yet secured a permanent operational license in Nigeria but is positive about future opportunities. “These developments give companies the confidence to invest, hire more, and grow their teams,” Maurice said.

The Nigerian Securities and Exchange Commission (SEC) has taken steps to regulate the industry, recently granting approval-in-principle to two crypto exchanges, Quidax and Busha, under its Accelerated Regulatory Incubation Program. 

Again, four other digital asset platforms are undergoing assessments under the Regulatory Incubation Programme, which Maurice hopes will bring about greater industry growth.

This latest investment round, led by Blockchain Capital, brings the total equity raised by the company to $85 million. 

The funds will be channelled into expanding Yellow Card’s operations, focusing on growth across the continent, and enhancing its technological products, particularly its API and widget offerings. 

These tools are designed to enable both African businesses and international companies to seamlessly access the continent’s financial markets.

Since its inception in Nigeria in 2019, Yellow Card has made a name for itself by facilitating over $3 billion in transactions, spanning 20 African countries. The company, which initially targeted retail customers, is now shifting its focus towards supporting businesses. 

According to CEO Chris Maurice, the strategic pivot comes from recognising the higher transaction volumes and more stable revenue streams offered by businesses. This has been seen in the company’s operational model and messaging, with an emphasis on treasury management and international payments using stablecoins.

This funding round included contributions from several notable investors, including Polychain Capital, Block Inc., and Winklevoss Capital, reinforcing confidence in Yellow Card’s business model. 

Blockchain Capital’s General Partner, Aleks Larsen, noted that the company’s ability to integrate fast and affordable payment rails using open networks makes it a key player in Africa’s financial infrastructure. 

With stablecoins playing an important part in safeguarding against currency volatility and inflation, Yellow Card aims to broaden its reach and enhance its offerings to meet the needs of businesses across the continent.

The increasing adoption of stablecoins in Africa, driven by their practical utility for international payments and cross-border trade, has allowed Yellow Card to flourish despite challenges in the global crypto market. 

With more African businesses turning to stablecoins for financial management, the company expects its transaction volumes to continue growing, building on the strong momentum generated by its expanding business customer base.

Yellow Card plans to continue engaging with regulators across Africa, aiming to strengthen a clear and supportive regulatory environment.