Mambo!👋! Stablecoins can move money faster, but that’s only one part of the business.
This week, we’re seeing what else it takes. Kredete is buying infrastructure, Luno is buying licensed payment and fund management rails, Yellow Card is adding more regulatory footing, while Payd is learning the hard way what happens when payment volume grows faster than treasury.
The story
Kenya’s stablecoin powered fintech Payd to resume services after FX losses disrupted customer payouts.
Payd’s monthly payment volume grew from $500K to over $3M, but rapid growth exposed weaknesses in its treasury controls. The company is now cutting supported currencies from 52 to 13.
This reminds Fintechs that volume can scale faster than the treasury behind it but without strong FX management, growth itself can become the risk.
Deals
Kredete acquired Gravv to build stablecoin infrastructure for global money movement.
Gravv connects banks, blockchains and local payment rails, processing more than $3 billion in annualized volume for 1,000+ businesses.
Stripe acquired Bridge. Now Kredete, one of Africa’s fast growing remittance players, is acquiring stablecoin infrastructure too.
Launches
Yellow Card secured MSB and PSP licenses in Canada.
The move gives one of Africa’s largest stablecoin fintechs stronger regulatory footing in a market increasingly used by African fintechs like Grey, Due and others to access global banking and payment partnerships.
Regulation
Nigeria's central bank has opened applications for a regulatory sandbox for stablecoin companies, virtual asset providers, fintechs, and financial institutions to test products under supervision.
Madini
Local stablecoins are great, but who really needs them?
“A Nigerian who wants dollar exposure has an obvious reason to hold USDT or USDC. A Tanzanian business making a payment to China has a reason to want dollars. An importer, trader, or payment company can use a dollar-backed stablecoin beyond its home market because the other side of the transaction is more likely to recognise it.
A Tanzanian shilling-backed stablecoin does not have the same cross-border network simply because it represents the underlying currency.”
From inside
Stablecoin companies are increasingly acquiring what takes years to build: licences, local rails, treasury capabilities and trust.
Luno acquired Kenyan cross border payments company and fund manager GTXN.
GTXN gives Luno licensed rails to collect, manage and pay out money across corridors connecting developed and emerging markets, bringing payments, fund management and digital assets closer together.
On the record
Grey just crossed $70 Million in Stablecoin deposits.
Written from inside Africa with love 🇹🇿💚
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