Onafriq Expands USDC Settlement Options Across African Payment Network

Onafriq has expanded its USDC-based settlement options across its payment network throughout Africa. This structure utilizes stablecoins for cross-border settlements and liquidity management between customer payment interfaces and banks, fintechs, and mobile money operators. Circle announced that Onafriq has added a regulated stablecoin settlement layer alongside its existing fiat currency payment network through USDC, Circle Mint, and Circle Payments Network. The pilot program announced last year is described as a case of expansion in this material. Onafriq and Circle noted that over 80% of intra-African payments go through foreign exchange banks outside the continent, resulting in annual transaction fees of $5 billion. The Onafriq network connects over 40 African markets, 1 billion mobile money wallets, and 500 million bank accounts. Circle stated that it has reduced the implementation period from six months to four to six weeks through USDC and its API and issuance capabilities. Rajat Mishra, Chief Product Officer of the Onafriq Network, explained that regulated stablecoins facilitate fast and flexible cross-border settlements. A stablecoin is a cryptocurrency designed to be pegged to the value of fiat currency or specific assets. In the payments industry, there is an increasing number of cases where stablecoins are first used for backend fund movement and liquidity distribution. According to Circle's Q2 earnings report, the circulating supply of USDC was $73.3 billion, and the on-chain transaction volume was $14.8 trillion. External reactions have been limited, and Circle has stated that it has a commercial relationship with Onafriq.

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