STABLECOINS | ‘We’re Building Using Fiat Infrastructure Powered By Stablecoins,’ Says CEO, Flutte...
The CEO of Flutterwave, Olugbenga ‘GB’ Agboola, has spoken about the company’s latest move to build stablecoin rails on top of its existing and compliant fiat rails.
Speaking at the 2026 World Economic Forum in Davos, GB said stablecoins speed up settlement times and in turn enables more turnaround and trade opportunity across the entire sales cycle.
Explaining how stablecoins work, GB said:
“Money doesn’t actually move, instruction moves, and when you use blockchain to move that instruction, you are creating a transparent way to move money without sacrificing the fiat guard rails.
What it literally does is make it easier and quicker to move money especially in emerging markets where money movement is very very key dependent for growth in the economy.”
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Being the most licensed non-bank fiat company in Africa and operational over the last 10 years, GB explained that the introduction of stablecoins does not change the company’s operations.
“When it comes to stablecoins, nothing is changing in our customer experience. You want to send money from Nigeria to South Africa or the United States, nothing is changing.
What is changing is under the hood. We’re making it quicker and faster to move that money from the send to the business via stablecoin rails, via USDC, which is regulated, backed by the dollar, and just makes its quicker and faster.
Unlike most FIs [financial institutions] in the world, in Africa, you need a correspond bank first in order to move money via SWIFT rails. This takes away all that complexity and makes it simpler for money to move quicker yet with the entire infrastructure that guards money movement globally right now.”
ICYMI: Last week, Africa’s largest start-up and payments giant @theflutterwave – valued at $3bn – showcased their $USDC merchant settlement solution built on #Hedera with support from @The_Hashgraph Association’s #Hashgraph Enterprise Program.@BitcoinKE:https://t.co/FsNoYQHCpS
— Hedera (@hedera) October 9, 2023
The Send App Stablecoin Play
Giving an example of PayDay, GB said the company is enabling Nigerian engineers to be paid via stablecoins on Flutterwave.
GB also talked about the Send App consumer app and how the company is building the stablecoin backend infrastructure enabling the money to move in seconds.
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Speaking on the costs, GB said:
“If you’re doing B2B payments, you can pay as low as 0.5% for example, compared to before through maybe a different rail which could be as high as 1.5%.
So there’s a lot of cost savings in there and yet a lot more efficiency as an entire infrastructure.”
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When asked about the broader fintech space in Africa, GB highlighted products like PiggyVest and Bamboo for savings and investment which are solving real problems in Africa.
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When it comes to VC investments, GB provided some valuable insights for anyone looking at Africa.
“I think being able to understand emerging markets is very key. You have to also have an interest in emerging markets, not just deploying dollars and stepping back.
Startups need growth partners and investors, not just checks. Check are key, but beyond the checks, how do you help us to growth from Series A to Series B? How do we grow go-to market? How do you elp us to scale compliance?
All of tht skill set helps a lot to actually help to grow to the next level as well.”
Speaking on the next 5 years, GB said:
“I think in the next five years, stablecoins will become so entrenched in the entire global financial infrastructure. We will see stablecoins that are even backed by non-US currencies over time.
For example, if you want to tokenize the Naira, it doesn’t have to leave Nigeria for that to happen. It can happen in Nigeria for Nigeria.
So, we will start seeing a lot of local stablecoins plays happening across each country and you will see a lot of companies issues their own stablecoins because now its democratized and bring the entire infra on-chain helping them become more efficient, save more money and also create more efficient treasury plays which were not possible before.
So in five years there will be a lot more companies having their own stablecoins and they can use that to meet at some point for acceptance.”
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When it comes to consumer usage, GB opined:
“I think the apps we use will still remain the apps we use. The underlying hood will change. So you like Venmo, you like PayPal, you like Cash App, that’s fine, but behind the scene you’ll start seeing money moving via stable rails.
The apps are not gonna change in my opinion. They might evolve yes, but the risks are going to keep changing, but the behavior o the consumer will not change.”
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Stay tuned to BitKE updates on stablecoin developments in Africa.
CASE STUDY | Illegal ‘No-KYC’ Crypto Cards and a Wake-Up Call for Africa’s Crypto Ecosystem
Ghanaian crypto startup, Bitsika, has so-called ‘no-KYC’ crypto virtual cards – marketed as easy, anonymous ways for users in Africa to convert crypto into spendable fiat through VISA networks – are now attracting serious scrutiny from compliance experts and regulators.
We Processed about $40 Million and Registered Over 95K Users in 2020, Says BitSika CEO
What’s at stake isn’t just a fintech gimmick, it’s a potential breach of global anti-money-laundering (AML) and counter-terror finance (CTF) standards that could undermine the legitimacy of crypto services across the continent.
At the core of the controversy is how these cards claim to operate without Know-Your-Customer (KYC) identity checks, a foundational requirement under international AML/CTF rules. While Bitsika promotes its cards as a way to bypass traditional identity verification, even in jurisdictions with strict banking requirements, independent reviews highlight that ‘no-KYC’ card models in 2026 rely on legal loopholes and ambiguous issuing arrangements rather than true regulatory compliance.
This matters because financial regulators and global standard-setters, especially the Financial Action Task Force (FATF), make clear that virtual asset service providers (VASPs) and payment issuers must implement robust customer identification and verification to prevent misuse of digital financial tools for illicit finance. FATF’s Travel Rule and associated recommendations require crypto platforms and financial services to collect, verify, and share accurate user information whenever assets move across borders, just as traditional banks do.
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Why Bitsika’s Model is Problematic
Claims of ‘no KYC’ raise red flags for AML/CTF compliance: In regulated markets, card issuance tied to traditional payment networks like Visa or Mastercard must meet strict identity verification standards — something no-KYC models can’t legally satisfy at scale.
Compliance loopholes are unstable: Industry compliance professionals have publicly warned that services promoting anonymity in financial products often leverage gaps or fraud-prone pathways, and can be shut down abruptly when legal scrutiny catches up.
FATF has specifically identified that many jurisdictions, including across Africa, struggle with implementing crypto compliance, leaving gaps that bad actors can exploit if products aren’t held to global AML/CTF standards.
The broader implication is significant: if crypto products marketed to Africans evade KYC and other safeguards, they risk being labelled as illegal financial instruments in key markets. Regulators may treat these services as unlicensed or non-compliant financial actors, exposing users and providers to enforcement actions. This dynamic could damage trust in the crypto industry already under pressure from global regulators pushing for higher transparency and accountability.
For African crypto markets, which regulators and investors are watching closely as part of efforts to enhance financial infrastructure and retreat from global grey-list status, the emergence of non-compliant services could be a setback. It undermines efforts to legitimise digital assets as safe, transparent parts of the financial system rather than shadows acting outside regulatory norms.
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Stay tuned to BitKE for deeper insights into the African crypto space.
MILESTONE | Binance Insurance Fund Now Surpasses 10,000 Bitcoins
Over the past week, one of the most unheralded yet impactful moves in crypto unfolded within Binance, the largest crypto exchange globally.
Binance’s Secure Asset Fund for Users (SAFU), the exchange’s insurance-style reserve for covering extreme losses, hacks, or system failures, has been aggressively converting its holdings from stablecoins into Bitcoin (BTC).
Binance announced a 30-day strategic shift of its SAFU fund, originally dominated by stablecoins, into Bitcoin. The goal is to convert $1 billion of SAFU reserves into BTC to strengthen long-term protection and reduce counterparty risk tied to stablecoins.
This isn’t Binance ‘buying the dip,‘ but rather systematic reserve rebalancing designed to allocate roughly ~$33 million daily into BTC to avoid market shocks.
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Thanks to transparent on-chain disclosures and multiple independent news reports, here’s how the conversion has played out:
1,315 BTC (~$100 million) – first tranche completed early in February as part of the rollout.
Another 1,315 BTC (~$100 million) – boosting holdings to ~2,630 BTC.
3,600 BTC (~$233 million) – mid-week addition that brought total to about 6,230 BTC.
4,225 BTC (~$300 million) – latest transfer reported on February 9, pushing SAFU’s BTC stash past 10,000 BTC for the first time.
That puts the SAFU Bitcoin reserve at ~10,455 BTC, with a current notional value approaching three-quarters of a billion dollars and roughly 73% of Binance’s original $1 billion conversion target completed.
While large BTC acquisitions don’t dictate price direction on their own, they do reflect a broader shift: major exchanges treating Bitcoin not just as a tradable asset but as a cornerstone of financial resilience. If other platforms follow suit, institutional demand narratives could strengthen.
At the very least, Binance’s SAFU conversion is now one of the largest centralized Bitcoin accumulations outside of typical treasury strategies, and a story worth watching as the 30-day conversion window plays out.
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MILESTONE | Tether Is Now One of the Largest Holders of Gold Globally
A new report from Wall Street investment bank Jefferies says Tether’s physical gold holdings have climbed to at least roughly 148 tonnes, giving the stablecoin issuer a bullion stash valued at more than $23 billion, a total that places it among the top 30 gold holders worldwide.
According to Jefferies’ analysis, Tether’s quarterly gold purchases have outpaced most sovereign buyers such as:
Australia
United Arab Emirates (UAE)
Qatar
South Korea
Greece
with only a few central banks, including:
Poland and
Brazil
reporting higher net additions.
The gold is held as part of reserves to back both Tether’s flagship dollar-pegged token USDT and its gold-linked token XAU₮. Interestingly, the report notes that, because Tether is a private company, the estimated 148 tonnes likely represents a floor rather than a precise total.
The move towards diversifying its stablecoin reserves comes after the stablecoins crossed $300 billion in market cap (58% growth YoY) for the first time in October 2025 with analysts predicting the market could hit $500 billion and possibly $1 trillion by the end of the decade.
MILESTONE | Stablecoins Cross $300 Billion in Market Cap for the First Time
Stablecoin companies, with Tether leading in the pack, are already among the top 20 holders of U.S debt and the only non-sovereign debt holders in the list.
A look at the XAU₮ supply reveals that there were 712,000 tokens worth ~$3.2 billion by end of January 2026. This is an increase of 6 tonnes of token back. Interestingly, Tether CEO, Paolo Ardoino, recently revealed that the gold-back is being driven by a strong retail demand mainly from emerging markets.
The accumulation comes at a time when gold has seen a record-breaking high crossing $5,000 per ounce for the first time in history – a 50% rise since September 2025.
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Jefferies also pointed out that by the end of 2025, Tether’s audited USDT reserves included approximately $17 billion worth of gold, underscoring how significant physical gold has become in the company’s asset mix.
2025 RECAP | Tether (USD₮) Reports Over 500 Million Users and Over $10 Billion in Profit for 2025
Stay tuned to BitKE updates on stablecoin developments.
FINTECH AFRICA | the Nigerian Fintech Sector Expanded 70% in 2025, Says the Central Bank of Nigeria
The Nigeria financial technology industry expanded by an impressive 70 per cent in 2025, even as global economic conditions remained tough, the Central Bank of Nigeria (CBN) has reported.
The growth figures are part of the CBN’s latest report titled “Shaping the Future of Fintech in Nigeria: Innovation, Inclusion, and Integrity”, which highlights Nigeria’s rising position as a major digital finance hub in Africa.
According to the banking regulator, the surge in fintech activity reflects stronger domestic economic stability and a renewed focus on digital transformation, which has helped evolve the sector from a group of emerging startups to one of the continent’s most dynamic innovation ecosystems.
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CBN Governor, Olayemi Cardoso, said that despite global headwinds, Nigerian fintech companies continued to attract investment and drive industry change.
He noted:
“With improved stability of our currency and domestic economy, it is clearer than ever that financial innovation can advance inclusion at scale.”
However, the report also warned of obstacles that could slow future growth.
These include:
Increased compliance costs related to fraud prevention
Anti-money-laundering requirements and
Regulatory delays that are slowing the rollout of new products.
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Industry stakeholders also flagged technical challenges that could hamper expansion. About half of those surveyed described the fintech ecosystem’s interoperability as weak, citing fragmented API standards and data protocols. Meanwhile, 37.5 per cent pointed to limitations in digital identity systems and a lack of solid credit histories as barriers to broader financial service delivery.
The report referenced the strain on payments infrastructure during peak periods, such as the busy “Detty December” season, illustrating how spikes in travel, remittances, and wage disbursements put pressure on systems.
To sustain the momentum, the CBN outlined policy measures aimed at balancing innovation with financial stability. These include a proposed shared fraud-intelligence model, regulatory passporting to support cross-border expansion in Africa, and the use of open banking and tiered KYC frameworks to broaden access to financial services.
The central bank said that by strengthening collaboration between regulators and innovators, Nigeria’s fintech sector can continue to be a driver of economic growth and a model for financial inclusion across the continent.
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REGULATION | the Zimbabwe Financial Securities Exchange Reportedly Gets Approval to Pilot an Asse...
Zimbabwe’s Financial Securities Exchange (FINSEC Zim) has received regulatory approval to operate the country’s first asset tokenisation market, a ground-breaking development for digital finance and capital markets in the region.
The Securities and Exchange Commission of Zimbabwe (SEC Zim) granted the licence under its regulatory sandbox framework, enabling FINSEC to pilot tokenised trading of real-world assets in a controlled, supervised environment.
A Milestone for Digital Finance and Market Modernisation
The approval marks a significant shift in Zimbabwe’s financial landscape, introducing a regulated structure for converting ownership interests in physical assets, starting with property, into digital tokens that can be issued, traded, and settled on a blockchain-enabled platform.
Under the sandbox framework, SEC Zim allows innovations to operate with real users while closely monitoring risks and regulatory compliance ahead of broader market rollout. This approach balances innovation with investor protection and risk oversight.
FINSEC Zimbabwe, established in 2016 as a licensed Alternative Trading Platform (ATP) and part of the Escrow Group, operates an automated electronic exchange for securities, including equities and derivatives. The addition of an asset tokenisation market expands its remit into digital asset infrastructure.
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What Asset Tokenisation Means
Asset tokenisation involves digitising economic rights in real-world assets – such as property, livestock, or agribusiness equipment – into digital tokens on a blockchain or distributed ledger. Unlike traditional cryptocurrencies, these tokens are fully backed by identifiable underlying assets and issued within existing legal, custodial, and regulatory frameworks.
This legal and technological fusion is designed to unlock liquidity from traditionally illiquid assets, enable fractional ownership, and broaden access to investment opportunities for retail, institutional, and diaspora investors. Fractionalisation allows investors to buy smaller portions of high-value assets, lowering barriers to entry and democratising investment.
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Platform Design and Regulatory Safeguards
According to FINSEC Zimbabwe, the approved market infrastructure will support the full lifecycle of tokenised assets from origination, due diligence, issuance, and trading, to settlement, custody, and reporting.
The platform will be built on a secure, blockchain-enabled system that provides immutable audit trails, programmable compliance via smart contracts, and real-time regulatory oversight.
Key compliance and investor protection features include:
Escrow-based settlement and segregation of investor funds
Independent asset valuations and insurance coverage where applicable
Full KYC (Know Your Customer), AML (Anti-Money Laundering), and investor suitability controls
Regulated secondary trading to enhance liquidity
These safeguards aim to provide confidence for both issuers and investors operating within the nascent tokenised asset market, ensuring transparency and risk mitigation under regulatory supervision.
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The first asset classes approved for tokenisation include income-generating and development property. Each tokenised offering must be backed by verifiable assets, subject to independent valuation, and supported by custodial oversight.
For asset owners such as property developers, farmers, and agribusiness operators, the tokenisation market represents a new capital-raising channel that complements traditional bank financing. For investors, particularly those previously excluded due to high minimum investment thresholds or illiquidity, it opens access to a broader array of asset-backed opportunities.
Market Reception and Future Outlook
Market analysts view FINSEC Zimbabwe’s approval as a major step toward deepening Zimbabwe’s capital markets and integrating digital finance into the broader economy. By channeling savings into productive sectors and lowering entry barriers for investment, the initiative could spur both financial inclusion and economic growth.
FINSEC plans to launch its first pilot tokenised asset offerings once issuer onboarding and investor education initiatives are finalised under SEC Zim’s sandbox regime.
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Banks Could Eventually Offer Similar Products to Crypto, Says U.S Treasury Secretary
United States Treasury Secretary, Scott Bessent, told lawmakers that traditional banks and the crypto industry could eventually provide products and services that resemble one another.
Speaking before the Senate Banking Committee, Bessent was asked by Republican Senator, Cynthia Lummis, whether there might come a point when traditional banks and crypto firms are offering the same kinds of financial products. He replied that he believes that could happen over time, adding that the Treasury has been engaging with small and community banks on how they might participate in the digital asset space.
Bessent also pressed for clearer regulations around crypto, saying it’s ‘impossible to proceed’ without defined rules. He urged support for the CLARITY Act, a major crypto market structure bill currently stalled in Congress. Bessent went so far as to suggest that those opposed to the legislation ‘should move to El Salvador.‘
CLARITY ACT | U.S Senate Banking Committee Unveils Draft Crypto Market Structure Bill With Proposed Amendments
On the legislative front, the crypto market structure bill has hit a standstill in the Senate Banking Committee. Lawmakers from both parties have been at odds over provisions, including proposed limits on stablecoin yields that some crypto firms, such as Coinbase, have opposed.
Bessent emphasized that avoiding volatility in deposits, whether at banks or within stablecoin systems, is critical, since deposit stability underpins the ability of banks to lend to households and businesses. He said the Treasury would continue working to ensure that deposit outflows do not destabilize the financial system.
Several crypto companies have offered potential compromises, including expanding the role of community banks in the stablecoin ecosystem, in an effort to help advance the stalled legislation.
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