Market News

By Justice Okamgba

Banks, asset managers and financial technology companies are considering offering stablecoins and other digital asset services to their customers as cryptocurrency adoption expands in Nigeria, according to the Co-Founder and Chief Executive Officer of Quidax, Buchi Okoro.

The growing institutional interest could take digital assets beyond individual cryptocurrency traders and into mainstream financial services, including cross-border payments, business transactions and international money transfers.

Okoro said Quidax was positioning itself to support financial institutions and businesses seeking to enter the market by providing the necessary infrastructure and regulatory support, with emphasis on compliance, transparency and customer trust.

He spoke recently at The Exchange, an invitation-only event on stablecoins and digital assets hosted by Quidax in partnership with Tether, the issuer of USDT, in Lagos. The event brought together regulators, financial technology executives, industry leaders and legal and audit professionals.

“Over the next five years, our focus is on supporting the ecosystem around us. More and more institutions, banks, asset managers, fintechs and businesses across every sector are considering how to bring stablecoins and digital assets to their own customers,” Okoro said.

Okoro added that the company intended to become a trusted partner to institutions entering the market through infrastructure provision, business education and adherence to professional and compliance standards. The interest comes amid growing stablecoin adoption in Nigeria, where dollar-pegged digital assets are increasingly being used for foreign currency transactions and cross-border payments.

Stablecoins are digital tokens designed to maintain a relatively stable value by being pegged to an underlying asset, commonly the US dollar. Unlike cryptocurrencies such as Bitcoin and Ethereum, whose prices fluctuate significantly, dollar-backed stablecoins such as Tether’s USDT and Circle’s USDC are designed to maintain a one-to-one value with the US dollar. Their appeal in emerging markets stems partly from their use in transferring money across borders, settling international transactions, and accessing dollar-linked assets through cryptocurrency platforms.

In a June 2026 analysis of stablecoin use in Nigeria, the International Monetary Fund noted that households and small businesses were increasingly using digital wallets and dollar-pegged crypto assets to move money internationally.

Nigeria received approximately $59bn in crypto asset inflows between July 2023 and June 2024, according to the IMF. The fund also estimated that the country accounted for about 60 per cent of stablecoin inflows into sub-Saharan Africa between late 2019 and early 2025.

The IMF identified stablecoins as an important link between cryptocurrency markets and the traditional financial system, particularly in cross-border transactions. It attributed part of their growing adoption in Nigeria to naira depreciation, inflation, and limited access to foreign exchange in 2023 and 2024, which increased demand for dollar-linked assets.allenges for monetary policy and financial regulation.

The IMF warned that widespread adoption could encourage digital dollarisation, potentially weakening demand for the naira and reducing the effectiveness of domestic monetary policy.

The fund also highlighted money laundering risks and difficulties in monitoring transactions conducted through digital wallets and cryptocurrency platforms outside conventional financial channels. These concerns have become increasingly important as Nigeria’s digital asset market expands.

Speaking at the event, the Head of the Securities and Exchange Commission’s Lagos Zonal Office, John Briggs, who represented the Director-General of the commission, Dr Emomotimi Agama, said the growth of digital asset activity made regulation and investor protection increasingly important.

Citing Chainalysis data, Briggs said sub-Saharan Africa received more than $205bn in on-chain value between July 2024 and June 2025, with Nigeria accounting for over $92.1bn, making it the region’s largest market during the period. He also said Nigeria ranked third globally in the 2026 Global Crypto Adoption Index and first in peer-to-peer activity and cross-border flows.

The 2026 index, published by Chainalysis on 23 September, confirmed Nigeria’s third-place overall ranking, with the country placing first in domestic peer-to-peer activity and cross-border flows. Briggs said the figures reflected how Nigerians were using digital assets for international transfers and to manage exposure to currency fluctuations.

“These are not abstract statistics. They are Nigerians, traders, families, and young entrepreneurs using digital assets and stablecoins in particular, to move value across borders and manage currency risk. The question before us is not whether digital assets will shape the future of finance in Nigeria. They already do. The question is whether that future will be built on trust. The Commission is determined that it will,” he said.

The regulatory framework will be a major consideration for financial institutions seeking to introduce stablecoin services. Quidax’s regulatory journey reflects the SEC’s efforts to bring digital asset operators under formal supervision. In August 2024, the SEC granted approval-in-principle to Quidax and Busha, making them the first cryptocurrency platforms to receive such recognition under its regulatory framework. The approval, however, did not amount to full registration.

On 29 October, the SEC clarified that no digital asset operator had obtained final registration under its Accelerated Regulatory Incubation Programme. It said approvals-in-principle remained conditional on operators’ continued compliance with regulatory requirements.

For banks, asset managers and fintech companies considering stablecoin services, these requirements will have implications for customer verification, transaction monitoring, digital asset custody and investor protection. The IMF has also called for clearer rules governing stablecoin issuers, improved transaction monitoring and stronger payment infrastructure to address risks associated with their growing use.