Pan-African payments network Onafriq has partnered with blockchain infrastructure provider Privy to develop regulated stablecoin infrastructure for business-to-business transactions across the continent.
The collaboration aims to enable businesses operating in African markets to leverage stablecoins for cross-border payments while maintaining compliance with local regulatory frameworks, according to a statement released by the companies.
Onafriq, formerly known as MFS Africa, operates one of Africa’s largest mobile money interoperability networks, connecting more than 500 million mobile money wallets across 40 countries. The company processes over $20 billion in transaction value annually.
Targeting Business Payment Challenges
The partnership addresses persistent challenges in African business payments, including high remittance costs, currency volatility, and limited access to foreign exchange. Stablecoins, which are cryptocurrencies pegged to stable assets like the US dollar, offer a potential solution for businesses seeking faster and cheaper cross-border payment alternatives.
“Businesses across Africa face significant friction when moving money across borders,” said Dare Okoudjou, founder and chief executive of Onafriq, in the statement. “By combining our extensive distribution network with Privy’s technology, we can provide a compliant pathway for businesses to benefit from blockchain-based payments.”
Privy, a United States-based company, provides infrastructure that enables businesses to build blockchain-based applications with built-in compliance tools. The company’s technology supports wallet creation, key management, and transaction monitoring.
Regulatory Compliance Focus
The companies emphasised that regulatory compliance will be central to the infrastructure being developed. The partnership plans to work with financial regulators across African markets to ensure the stablecoin payment rails meet local licensing and anti-money laundering requirements.
“Regulation is not an obstacle but a foundation for sustainable adoption,” said Henri Stern, chief executive of Privy. “We are building this infrastructure to operate within existing regulatory frameworks, not around them.“
The initiative enters a rapidly evolving regulatory landscape for digital assets in Africa. Nigeria, South Africa, Kenya, and Ghana have all introduced or proposed frameworks governing cryptocurrency and stablecoin use in recent months.
Growing Stablecoin Activity in Africa
Africa has seen significant growth in stablecoin adoption, particularly for remittances and business payments. According to blockchain analytics firm Chainalysis, Africa received $117 billion in cryptocurrency transaction volume in 2023, with stablecoins accounting for a substantial portion of that activity.
However, much of this activity has occurred through peer-to-peer channels and unregulated platforms, raising concerns among financial authorities about consumer protection and financial stability.
The Onafriq-Privy partnership represents a formal attempt to bring stablecoin infrastructure into regulated financial services channels, targeting institutional users rather than retail consumers.
The companies did not disclose a timeline for launching the infrastructure or specify which African markets would be prioritised in the initial rollout. They also did not name which stablecoins would be supported by the platform.
Onafriq has raised over $200 million in funding from investors including Visa, Mastercard, and AfricInvest. The company announced a $100 million Series C extension round in 2022 at a $1 billion valuation.