Blockchain payments firm Ripple has invested in Flutterwave, one of Africa’s largest payment processors, as part of a strategic push to integrate stablecoins into cross-border and domestic payment flows across the continent.
The investment amount was not disclosed. Flutterwave, which is valued at over $3 billion following its 2022 Series D fundraise, processes payments for more than 1 million businesses across 34 African countries.
The partnership will explore how Ripple’s stablecoin infrastructure can be embedded into Flutterwave’s payment rails, enabling businesses and consumers to move value across borders using dollar-backed digital currencies instead of traditional correspondent banking networks.
The collaboration aims to focus on using stablecoins to improve the speed and cost of payments for Flutterwave merchants, particularly those engaged in cross-border commerce. The companies did not specify which stablecoin would be used, though Ripple has been developing its own USD-pegged stablecoin, RLUSD, which launched in December 2024.
Stablecoins have gained traction in African markets as a hedge against currency volatility and inflation. In countries like Nigeria and Kenya, where local currencies have depreciated sharply against the dollar, peer-to-peer stablecoin trading volumes have surged, according to data from Chainalysis and KuCoin.
Flutterwave founder and chief executive Olugbenga Agboola said the partnership aligns with the company’s broader strategy to offer alternative settlement options beyond traditional fiat rails. “We are exploring how blockchain-based settlement can reduce friction in payments, especially for remittances and merchant payouts,” Agboola said in the statement.
Regulatory Uncertainty Remains
Despite growing adoption, stablecoin regulation across Africa remains fragmented. Nigeria’s Securities and Exchange Commission has proposed a framework for digital asset regulation, but stablecoins occupy a grey area between payment instruments and securities. Kenya and South Africa are also developing regulatory guidelines, though none have been finalised.
Ripple has faced its own regulatory challenges, most notably a prolonged legal battle with the United States Securities and Exchange Commission over whether its XRP token constitutes a security. The case remains partially unresolved, though a 2023 court ruling found that XRP sales on secondary markets do not violate securities law.
The company has been expanding aggressively outside the U.S. market. In 2023, Ripple acquired Metaco, a Swiss digital asset custody firm, and launched partnerships with central banks in Bhutan, Palau, and Montenegro to explore central bank digital currency infrastructure.
Flutterwave has been one of Africa’s most active fintech companies in recent years, expanding from payment processing into remittances, virtual card issuance, and business banking. The company processes over $16 billion in annual transactions and counts Uber, Booking.com, and Flywire among its clients.
The firm has also faced scrutiny. In 2022, Kenyan authorities froze over $50 million in Flutterwave accounts as part of a money laundering investigation. The company denied wrongdoing, and the funds were later released.
This is not Flutterwave’s first engagement with blockchain technology. In 2021, the company partnered with Chipper Cash to enable cryptocurrency purchases through its platform, though that feature was later discontinued in several markets following regulatory pressure.
Ripple’s investment in Flutterwave signals continued institutional interest in merging traditional payment infrastructure with blockchain-based settlement layers, particularly in markets where legacy banking systems are slow and expensive. Whether regulators will permit large-scale stablecoin use in payment flows remains an open question.