Swiss digital asset infrastructure provider SCRYPT has expanded its licensed stablecoin settlement infrastructure across four East African markets, aiming to help banks, payment providers and corporate treasury teams navigate persistent US dollar shortages and reduce cross-border payment costs.
The expansion introduces direct settlement corridors for the Kenyan shilling, Tanzanian shilling, Rwandan franc and Ugandan shilling, allowing businesses to convert local currencies directly into stablecoins without first purchasing US dollars.
The development comes as stablecoins increasingly move beyond speculative crypto assets to become payment infrastructure, particularly in emerging markets where businesses face currency volatility, limited access to dollars and costly correspondent banking systems.
Speaking to ITWeb Africa, Norman Wooding, founder and chief executive officer of SCRYPT, said stablecoins are increasingly being adopted for practical business use rather than investment purposes.
"Stablecoins have stopped being something people trade and started becoming the rails that money actually moves upon," said Wooding, adding that about 80% of the company's processed trading volume now comes from stablecoins.
According to Wooding, businesses across Africa are adopting stablecoins out of economic necessity rather than speculation, using them to pay international suppliers, manage treasury operations and reduce foreign exchange conversion costs.
The expansion comes amid growing global debate over the role of stablecoins in financial systems.
The International Monetary Fund has warned that while stablecoins can improve cross-border payments and financial inclusion, widespread adoption of foreign currency-backed stablecoins could weaken monetary policy, accelerate currency substitution and reduce the effectiveness of domestic financial systems, particularly in emerging markets.
Wooding said emerging markets are embracing stablecoins because they address longstanding inefficiencies in cross-border payments.
"People in emerging markets see the opportunity because they feel the pain," he said, pointing to inflation, currency volatility and limited dollar liquidity as key drivers of adoption.
As stablecoins gain traction across Africa, policymakers face the challenge of balancing faster, cheaper cross-border settlements with longer-term concerns around monetary sovereignty and financial stability.
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