Circle Ventures, the investment arm of USDC stablecoin issuer Circle, has backed CV VC’s $20m African Blockchain Fund, a move that highlights a significant shift in investor sentiment towards the continent’s digital asset space.

The investment is a signal that major global players are recognising that Africa’s digital asset future is being built on stablecoin-powered utility. Circle’s backing of the Cayman-Islands-domiciled fund, which focuses on early-stage African startups using blockchain for fintech, payments, and data infrastructure, is the latest in a series of deals channelling capital into the fundamental rails of African finance.

This sober focus on infrastructure follows a period of contraction that saw the shutdown of several high-profile, consumer-focused crypto exchanges. Now, capital is flowing to companies solving long-standing problems of currency volatility, cross-border payment friction, and financial exclusion.

The Sobering Up of African Crypto

“2025 is shaping up to be the year of stablecoins,” says Gillian Darko, Vice President of Strategy at pan-African crypto exchange Yellow Card. “It’s all about solving real-world problems. Stablecoins help with currency volatility, and there’s a USD scarcity for many businesses.”

The data supports this narrative. Blockchain analytics firm Chainalysis reports that stablecoins now account for 43% of all cryptocurrency transaction volume in sub-Saharan Africa. In Nigeria alone, citizens received $24bn worth of stablecoins in 2024, the second-highest amount globally, underscoring their role in commerce and as a hedge against local currency devaluation.

This demand has given rise to new, regulated local solutions. The compliant Nigerian Naira (cNGN), a regulated stablecoin pegged 1:1 to the Naira and launched in February 2025, has seen its supply grow nearly tenfold to 600m cNGN as it offers a programmable, open-network alternative to the country’s central bank digital currency, the eNaira.

The New Guard: From Remittances to Travel Tech

The startups attracting fresh capital are targeting specific, high-friction B2B and B2C verticals where stablecoins offer clear advantages in speed and cost.

• Credit-building Remittances: This week, Kredete, a platform that allows African immigrants to build credit while sending money home, raised a $22m Series A. By processing remittances using stablecoins, it cuts transfer fees to under a dollar and reports the consistent payment history to credit bureaus in the user’s host country. Kredete says its users have seen their credit scores increase by an average of 23 points within six months.
• Cross-border B2B Payments: Kenyan fintech HoneyCoin closed a $4.9m seed round earlier this month to expand its stablecoin settlement infrastructure, which connects banks and mobile money networks across 15 African countries. For its 350 enterprise clients, it turns multi-day settlement times into a matter of hours.
• Tourism Payments: South African travel fintech TurnStay, which raised $2m, uses stablecoins to slash payment processing costs for Africa’s tourism operators. By processing tourist card payments locally and settling with African merchants via stablecoins, the company says it delivers savings of up to 70% compared to traditional methods that can cost over 7% per transaction.
• Liquidity for Payment Providers: Dubai-based Mansa secured $10m in a round with an equity portion led by Tether, the world’s largest stablecoin issuer. The company provides liquidity in stablecoins, allowing payment companies to settle transactions instantly and overcome critical cash flow constraints.

Circle’s investment in the CV VC fund is a strategic foothold in an ecosystem that is rapidly maturing. While the fund is sector-agnostic within Web3, its focus on fintech and payments aligns perfectly with the primary use case for Circle’s core product, USDC. By backing a dedicated African fund, Circle gains market intelligence and exposure to the next wave of startups that could become major users of its infrastructure.

The trend is clear: after the speculative frenzy of the last bull run, the future of digital assets in Africa is being defined by practical applications. Investors are no longer funding platforms for trading volatile assets, but are instead backing the picks and shovels — the settlement rails, liquidity providers, and niche financial products — that leverage the efficiency of stablecoins.

While navigating the continent’s fragmented regulatory landscape remains a challenge, the path forward is focused on deeper integration with the traditional financial system. HoneyCoin plans to launch a stablecoin-backed debit card with Visa, and Kredete aims to use the credit histories it helps build to offer loans and mortgages. The message from investors is clear: the speculative fever has broken, and the race to build Africa’s new financial rails is on.