Circle and Onafriq Collaborate to Enhance Cross-Border Payments in Africa

According to Cointelegraph, stablecoin issuer Circle has entered into a partnership with Onafriq, Africa's largest payments gateway, to address the high costs associated with cross-border payments across the continent using USDC. The collaboration aims to pilot USDC settlements within Onafriq's extensive network, which encompasses over 500 wallets and 200 million bank accounts across more than 40 countries. Onafriq founder and CEO Dare Okoudjou emphasized that integrating USDC will simplify financial transactions for both institutions and individuals, reduce costs, and enhance trust in digital financial services. Currently, over 80% of intra-African transactions are processed through correspondent banks outside the continent and settled in foreign currencies such as the US dollar or euro, resulting in approximately $5 billion in fees annually. Miriam Kiwan, Circle's vice president for the Middle East and Africa, highlighted Africa's significant potential for digital asset innovation, particularly in the adoption of stablecoins for cross-border payments. She stated that the partnership aims to transform the movement of money across borders by providing secure and transparent digital payment rails that enhance economic empowerment and connectivity. By October 2024, stablecoin transactions accounted for about 43% of the total transaction volume in the Sub-Saharan African region, as reported by Chainalysis. Eric Jardine, cybercrimes research lead at Chainalysis, linked the increase in stablecoin transaction volume in the region to currency devaluation, with the Nigerian naira being the worst-performing African currency, depreciating by over 100% in 2024. The collaboration between Circle and Onafriq aligns with Circle's global strategy to expand USDC adoption. On April 21, 2025, Circle launched the Circle Payments Network (CPN), a consortium of financial institutions aimed at streamlining 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, supporting various use cases including remittances, payroll, treasury, and invoice payments. Additionally, on April 29, Circle received in-principle approval from the Financial Services Regulatory Authority of the Abu Dhabi Global Market, allowing it to operate as a regulated money services provider in the United Arab Emirates.