Flutterwave, Nigeria’s leading fintech firm, is joining forces with Polygon Labs to establish a cross-border payment system leveraging stablecoins. This initiative aims to facilitate transactions across 34 countries in Africa, marking a significant advancement in the region’s financial technology landscape.

According to a report from Bloomberg, the partnership with Polygon will utilize its blockchain framework, designed for scalable and efficient transactions on Ethereum, to enhance the speed and cost-effectiveness of payment settlements.

Olugbenga Agboola, the CEO of Flutterwave, expressed optimism about the potential impacts of this development. He stated, “Stablecoin adoption will drive more flows into Africa,” also remarking that this initiative could significantly increase transaction volumes by tenfold.

This payment initiative emerges amidst a broader trend of stablecoin usage boom across Africa. As noted in recent reports, local currencies are often subject to inflationary pressures, making stablecoins like USDT and USDC attractive options for consumers looking to hedge against such economic conditions.

Increasing Stablecoin Adoption The adoption of Bitcoin and stablecoins is increasing in Sub-Saharan Africa. Source: Cointelegraph

As stablecoins gain traction, their practical benefits also become evident. They not only serve as a safeguard against currency depreciation but also function efficiently as remittance tools in a region where such transfers are crucial for many households. A Chainalysis report revealed that the cost of sending a $200 remittance from Sub-Saharan Africa is nearly 60% lower when utilizing stablecoins compared to conventional fiat transfers.

Remittance Cost Comparison Source: Chainalysis

Furthermore, there has been a significant rise in stablecoin adoption alongside clear and supportive regulatory frameworks emerging in countries such as Nigeria, Kenya, Ghana, and South Africa.