Flutterwave, one of Africa’s largest financial-technology companies, is developing a stablecoin-based payment system to accelerate global settlements for African businesses, Bloomberg reported. The new service, scheduled to launch later this year, aims to reduce transaction delays and costs that continue to burden trade across the continent.

The Nigerian firm is collaborating with US-based Polygon Labs, the blockchain infrastructure developer, to support the initiative. The partnership will enable businesses using Flutterwave’s platform to send and receive payments in stablecoins, digital tokens backed by the US dollar, offering a faster and cheaper alternative to traditional channels.

Chief Executive Officer Olugbenga Agboola said the company wants to position itself as a preferred payment solution for African enterprises engaged in international trade. “We want to ensure that when those businesses are paying suppliers in Africa, we are the payment type of choice,” he said.

Global stablecoin adoption has accelerated since new US regulations in July clarified their use in payments. In Nigeria, where the naira continues to weaken and foreign exchange limits remain tight, residents executed 50 billion US dollars in crypto transactions over the year to June 2024 as businesses and individuals sought faster, cheaper cross-border transfers.

Agboola said stablecoin-based transactions could transform settlement speeds across Flutterwave’s 34-country network, cutting processing times from days to minutes.