Nigeria and South Africa are emerging as dominant forces in the $300 billion global stablecoin market, reinforcing Africa’s growing influence in digital finance and crypto adoption. New data shows that both countries rank among the fastest-growing markets for dollar-pegged digital assets as users seek faster and cheaper cross-border payment solutions.
A new Stablecoin Utility Report by YouGov, conducted in partnership with BVNK, Coinbase, and Artemis, surveyed more than 4,650 crypto holders and prospective investors across 15 countries. The findings highlight strong adoption momentum in Africa’s two largest economies, where confidence in stablecoins now exceeds many global peers.
Stablecoins are digital tokens designed to maintain a fixed value, usually pegged to the US dollar. As of February 2026, the market capitalization of stablecoins has surpassed $300 billion, positioning the sector as the liquidity backbone of the global cryptocurrency ecosystem. Consequently, demand continues to expand in emerging markets where currency volatility and high remittance costs persist.
In Nigeria and South Africa, nearly 80 percent of respondents reported holding stablecoins. Moreover, more than three-quarters plan to increase their holdings within the next 12 months, signaling sustained growth in crypto adoption. Nigeria stands out even more strongly, as about 95 percent of respondents indicated they prefer receiving payments in stablecoins instead of the naira. This preference reflects rising demand for inflation-resistant digital assets in volatile economic conditions.
Chris Harmse, co-founder of BVNK, said users increasingly rely on stablecoins in regions where traditional payment systems remain slow or expensive. He added that many users are now requesting deeper integration of stablecoins into existing financial platforms, which could accelerate mainstream usage across Africa.
Globally, US-pegged tokens dominate the market. Tether leads with a valuation of approximately $185 billion, while USD Coin holds an estimated $75 billion market cap. Analysts expect further expansion as regulatory clarity improves in key jurisdictions, particularly in the United States where policymakers are reviewing the proposed GENIUS Act to establish clearer rules for issuers.
However, central banks in emerging economies continue to express caution. Policymakers warn that widespread stablecoin usage could accelerate capital flight, weaken domestic currencies, and reduce bank deposits. Such trends may complicate monetary policy management and financial stability.
Despite these concerns, some regulators acknowledge potential efficiency gains. Lesetja Kganyago, governor of the South African Reserve Bank, previously noted that sending $100 to neighboring Mozambique can cost as much as $30 in remittance fees. Stablecoins could significantly lower those transaction costs and enhance regional trade flows.
Even so, everyday usage remains limited. Nearly 90 percent of stablecoin activity still centers on crypto trading rather than retail payments. Only about 6 percent of transactions involve paying for goods and services. Therefore, merchant acceptance and payment infrastructure remain critical barriers to widespread adoption.
Nevertheless, interest continues to rise across low- and middle-income economies, where non-holders show twice the entry interest compared to high-income countries. As digital finance expands across the continent, Nigeria and South Africa are positioning themselves at the forefront of the global stablecoin revolution, reshaping Africa’s role in the evolving crypto economy.
