ONYINYECHI NWAIGBA 
Nigerian-founded fintech company Yellow Card is expanding its global stablecoin infrastructure after securing US$40 million in strategic funding, as demand grows for faster and more efficient ways to move money across borders.
The funding comes at a time when stablecoins are moving beyond their origins in cryptocurrency trading and increasingly being used as a payment and settlement tool, particularly in emerging markets where businesses and individuals face high costs, foreign-exchange constraints and delays in traditional international transfers.
For Africa, where cross border payments remain a major challenge for businesses and individuals, the growth of stablecoin infrastructure could have implications for financial inclusion, international trade and access to dollar-denominated financial services.
But the opportunity also comes with questions around regulation, consumer protection, monetary stability and the responsible development of digital financial infrastructure.
From Cryptocurrency to Financial Infrastructure
Stablecoins are digital assets designed to maintain a relatively stable value by being linked to assets such as the US dollar.
Unlike more volatile cryptocurrencies, their appeal for businesses and individuals is increasingly tied to their usefulness for transferring and holding value.
That distinction is important in understanding Yellow Card’s latest expansion.
The company has evolved from a cryptocurrency exchange into a financial infrastructure provider focused on enabling businesses and institutions to move money using stablecoins.
Its expansion comes as stablecoin use grows rapidly across Africa, with Nigeria emerging as one of the continent’s largest markets.
The International Monetary Fund estimates that Nigeria received approximately US$59 billion in crypto-asset inflows between July 2023 and June 2024 and accounted for roughly 60 per cent of stablecoin inflows into sub-Saharan Africa.
The figures highlight why companies building infrastructure around digital dollars are increasingly looking towards African markets.
Why Stablecoins Are Gaining Ground in Nigeria
For Nigerian households and businesses, the attraction of stablecoins is closely linked to the difficulties associated with conventional cross-border payments.
International transfers can involve multiple intermediaries, lengthy settlement times and relatively high fees.
The IMF notes that stablecoins can enable near-instant cross-border transfers while reducing reliance on correspondent banking networks and multiple intermediaries. They can also broaden access to cross-border transactions for individuals and small businesses that have limited access to traditional financial services.
This creates a potential financial inclusion opportunity.
A small Nigerian business that needs to pay an overseas supplier, receive payment from an international customer or manage dollar-denominated transactions may find digital financial infrastructure useful where traditional channels are slower or more expensive.
For households receiving money from abroad, faster and potentially cheaper transfers could also mean more of the money reaches the intended recipient.
However, stablecoins should not automatically be treated as a solution to every financial access problem.
Their usefulness depends on internet access, digital literacy, reliable on- and off-ramp services, regulatory clarity and users’ ability to convert digital assets into local currency when necessary.
The Business Case for Yellow Card’s Expansion
Yellow Card’s latest funding positions the company to deepen the infrastructure supporting these transactions.
Rather than focusing only on individual cryptocurrency users, the company has increasingly positioned its services around businesses and institutions that need to move money across borders.
This shift reflects a broader change in the digital-asset industry.
As cryptocurrency markets mature, some of the most significant opportunities are moving away from speculative trading and towards the infrastructure underneath financial transactions.
Stablecoins can act as a bridge between traditional currencies and blockchain-based payment networks, potentially allowing businesses to settle transactions more quickly and operate across markets without relying entirely on traditional correspondent banking arrangements.
Visa has also highlighted the use of stablecoins for corporate payments, supplier payouts and cross-border money movement, illustrating how digital-dollar infrastructure is increasingly being explored by mainstream financial institutions.
For an African-founded company, competing in this space internationally represents a significant development for the continent’s technology ecosystem.
A Financial Inclusion Opportunity
The strongest social-impact argument for stablecoin infrastructure is its potential to reduce some of the barriers that make international financial services inaccessible or expensive.
Traditional cross-border payments can be particularly difficult for smaller businesses.
Large corporations often have established banking relationships and treasury departments to manage foreign exchange and international settlements. Smaller businesses may not have the same resources.
Digital payment infrastructure can potentially narrow part of that gap.
The IMF notes that stablecoins can support financial inclusion by allowing underserved individuals and small firms to participate in cross-border transactions, although access to digital infrastructure and financial literacy remain important conditions.
For Africa’s growing population of digitally connected entrepreneurs, freelancers and small businesses operating internationally, this could become increasingly relevant.
But inclusion should not simply mean giving more people access to a digital financial product.
It should mean providing access to financial services that are affordable, understandable, secure and appropriately regulated.
That is where the governance question becomes important.
Regulation Cannot Be an Afterthought
The rapid growth of stablecoins presents regulators with a difficult balancing act.
On one hand, excessive restrictions could push legitimate activity into informal channels and limit innovation.
On the other, inadequate oversight could expose users and the wider financial system to risks involving fraud, money laundering, consumer protection and financial instability.
Nigeria’s situation is particularly complex because dollar-denominated stablecoins can provide an alternative way for households and businesses to hold and transact in foreign currency.
The IMF has described this phenomenon as “digital dollarization” and warned that widespread use of US dollar stablecoins could affect monetary sovereignty, capital-flow management and financial stability.
The issue is therefore bigger than whether stablecoins are useful.
The question is how they can be incorporated into the financial system without undermining the stability and integrity of that system.
The Need for Responsible Digital Finance
As companies such as Yellow Card expand, responsible digital finance will become increasingly important.
That means clear information for users, effective customer protection, strong anti-money-laundering systems and appropriate safeguards around digital assets.
It also means regulators and industry players need to keep pace with how quickly financial technology is evolving.
Nigeria has already established regulatory frameworks for virtual-asset service providers, but the IMF has called for stronger oversight and coordination between the Securities and Exchange Commission and the Central Bank of Nigeria because stablecoins can function simultaneously as digital assets and payment instruments.
This intersection makes regulation particularly important.
A company can build faster payment infrastructure, but the infrastructure will only generate sustainable value if users and institutions can trust the system supporting it.
What This Means for African Businesses
For businesses operating across Africa, the potential benefits extend beyond individual transactions.
Cross-border commerce remains constrained by fragmented payment systems, currency differences and difficulties accessing foreign exchange.
A more efficient payment infrastructure could make it easier for African companies to buy from international suppliers, receive payments from overseas customers and manage transactions across multiple markets.
That could support the growth of small and medium-sized enterprises that increasingly operate beyond their home countries.
It could also contribute to a more connected African digital economy.
However, stablecoin infrastructure will need to work alongside existing financial systems rather than simply attempt to replace them.
The IMF has recommended investment in faster, cheaper and more reliable cross-border payment infrastructure, with regulated stablecoins potentially complementing other payment systems where appropriate safeguards are in place.
From Funding to Wider Impact
Yellow Card’s US$40 million raise is significant not only because of the amount of capital involved, but because of what it signals about the direction of financial technology in Africa.
Investors are increasingly looking at stablecoins and blockchain-based systems as potential infrastructure for real-world financial activity.
For Nigeria, the development also highlights the growing ability of locally founded technology companies to build products addressing challenges that extend beyond the country’s borders.
But the success of this next phase should not be measured only by the company’s international expansion or the volume of transactions it processes.
The bigger question is whether the infrastructure being developed can make cross-border finance more accessible, efficient and inclusive while maintaining strong standards for consumer protection and financial integrity.
Building Digital Finance That Works for People
Africa’s financial system is changing rapidly.
Mobile money, digital banking, fintech platforms and now stablecoins are creating new ways for people and businesses to access financial services.
The opportunity is substantial, particularly for a continent where traditional financial infrastructure has often struggled to keep pace with the needs of increasingly digital economies.
But innovation alone does not guarantee inclusion.
The systems being built must be affordable, accessible and trustworthy. They must also operate within regulatory frameworks capable of protecting users without unnecessarily restricting innovation.
Yellow Card’s latest funding comes at an important point in that evolution.
As the Nigerian-founded company expands its stablecoin infrastructure globally, its progress will form part of a much broader experiment: whether digital assets can move from being primarily associated with cryptocurrency markets to becoming practical infrastructure for everyday international commerce.
For Africa, the stakes are larger than another fintech funding round.
The real opportunity is to build financial infrastructure that makes it easier for African businesses and individuals to participate in the global economy — while ensuring that the digital systems powering that participation are safe, responsible and inclusive.
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