Shifting trade policies accelerate Africa’s adoption of stablecoins

Global trade discussions often remain at a high level, focusing on geopolitics and national strategy. But across Africa and emerging markets, the real-world impact is felt in the liquidity of local markets. For countless businesses, the most pressing challenge is consistent access to U.S. dollars. Now, as new trade policies like U.S. tariffs enter the picture, they risk deepening this dollar scarcity, making it even harder for businesses to operate globally.

In this environment, the rapid adoption of dollar-backed stablecoins is not a political statement, but a pragmatic response to a clear economic need.

When tariffs are imposed on a nation’s key exports, such as on automotive and agricultural goods from Zambia or textiles from Lesotho, it can reduce the inflow of U.S. dollars into the national economy. This puts pressure on foreign exchange reserves, which in turn reduces the availability of dollars through conventional banking channels. For a local business that needs to pay an international supplier, secure raw materials, or manage its treasury, this market-wide shortage makes sourcing dollars through traditional banking slow, costly, and unpredictable. This is not a new problem in many African markets, but tariffs can act as a powerful accelerant.

This is precisely the friction point where regulated stablecoins like USDC and USDT provide immense value. They function as a readily accessible, digital reservoir of U.S. dollars, allowing businesses to ensure liquidity when local access to physical dollars tightens and to keep operations running smoothly. This liquidity allows them to settle international invoices in minutes, bypassing the multi-day settlement times of conventional cross-border payments and reducing both costs and supply chain delays. Furthermore, on a strategic level, holding a portion of their treasury in stablecoins allows businesses to protect their capital from local currency fluctuations, a risk that is magnified during periods of economic uncertainty.

The scale of this adoption is no longer theoretical. In Nigeria, we’ve seen over $21.8 billion in stablecoin volume in 2024. In South Africa, the $13.5 billion in volume is heavily driven by import/export businesses. In Kenya, $3.3 billion in transactions shows a natural synergy with the continent’s world-class mobile money infrastructure.

This trend is now maturing from a retail phenomenon into a core part of B2B infrastructure. The needs of a small business or a large corporation go beyond a simple wallet. They require robust, secure, and compliant solutions to manage digital assets at scale.

At Yellow Card, we provide business solutions including treasury management, invoice settlement as well as our payments API and widget. Businesses are using our platform to build more resilient payment systems and manage their financial operations in a complex global economy.

No doubt, the rise of stablecoins in Africa and emerging markets is a direct and rational response to persistent economic challenges, including global trade policies that threaten to intensify. This is about leveraging technology to overcome friction.

By providing a reliable and efficient channel for U.S. dollar liquidity, stablecoins are becoming an indispensable tool for African businesses to foster resilience, ensure continuity, and compete on the global stage.

Key takouts for financial advisers

1. Stablecoins as a treasury tool
   • Dollar-backed stablecoins like USDC and USDT allow businesses to weather challenges caused by U.S. tariffs and dollar shortages. They ensure liquidity, reduce settlement times for international payments, and serve as a hedge against local currency volatility. Advisers can explore how this solution could be integrated into the financial strategies of their business clients.
2. Rising demand for digital asset solutions
   • The sheer volume of stablecoin transactions across Africa – $21.8 billion in Nigeria and $13.5 billion in South Africa in 2024 – highlights the escalating adoption in B2B landscapes. Advisers can position themselves as key enablers by helping clients transition into digital asset solutions for treasury management and cross-border payments.
3. Cost and operational efficiency
   • By embracing platforms like Yellow Card, businesses can reduce the costs and delays typical of conventional payment systems. Advisers should assess such platforms for their clients, offering guidance in selecting solutions that are compliant, secure, and scalable for specific operational needs.
4. Mitigating currency and economic risks
   • Tariffs and other trade policies amplify economic challenges, increasing the demand for tools that ensure resilience during periods of uncertainty. Advisers should educate business clients on the advantages of holding portions of their treasury in stablecoins to safeguard their capital from fluctuations in local currencies.
5. Evolving From retail to B2B solutions
   • The transition of stablecoin usage from retail to B2B infrastructure opens opportunities for advisers to differentiate themselves. Advisers should partner with trusted crypto-asset platforms offering robust tools like payments APIs, treasury tools, and invoice settlement to meet clients’ operational demands.
6. Leveraging technology to overcome barriers
   • Technology-driven financial tools like stablecoins are reshaping the landscape for businesses in Africa, allowing them to overcome liquidity and payment friction points. Advisers should champion technological solutions that address these challenges, positioning themselves as innovative partners in their clients’ success.