Beyond the Dollar: Why Local-Currency Stablecoins Are Africa’s Next Big Digital Finance Opportunity

Introduction

A new Standard Chartered and Zodia Markets report finds that the biggest gaps in the stablecoin economy aren’t in Europe or North America, they’re in the very markets that are supposedly least ready for them.

Stablecoins have become vital infrastructure for digital payments, treasury operations and cross-border transactions. Yet more than 98% of stablecoin market capitalization is backed by the US dollar, far exceeding its roughly 50% share of global cross-border payments.

While USD stablecoins are expected to remain dominant, a new report from Standard Chartered and Zodia Markets explores where non-USD, local-currency stablecoins could find room to grow.

Below, we unpack the factors driving demand for local-currency stablecoins, the markets with the greatest potential, and what this emerging shift could mean for Africa’s financial ecosystem.

The Diversification Gap in Stablecoins

Standard Chartered and Zodia Markets frame this imbalance as a “diversification gap.” A structural divergence between how concentrated stablecoin issuance is and how multi-currency the global economy actually is. The report argues this gap represents genuine whitespace, not just a curiosity. If total stablecoin supply keeps growing materially, as most forecasts expect, even a small shift in share away from the dollar could translate into meaningful absolute growth for alternative-currency tokens.

Why Local-Currency Stablecoin Demand Could Grow

Standard Chartered and Zodia Markets argue that some non-G10 currencies may experience stronger stablecoin demand because of gaps in their existing financial infrastructure.

The report identifies three primary drivers:

Accessibility: Local-currency stablecoins can provide programmable, cross-border access in markets where opening domestic accounts is difficult or requires extensive documentation.

Settlement speed: Stablecoins offer near-instant, round-the-clock settlement, helping businesses reduce delays, liquidity friction and exposure to currency movements.

Relative stability: A currency does not need to outperform the US dollar to achieve adoption. It only needs to be more stable than neighbouring currencies, allowing it to serve as a regional settlement option for trade and payments.

Where Non-USD Stablecoins Could Scale

To translate its argument into a more practical assessment, Standard Chartered and Zodia Markets developed a comparative framework using the World Bank’s B-Ready 2025 data. The framework evaluates markets based on financial-services efficiency, international-trade efficiency, broader operational conditions and regulatory strength. Lower financial and trade efficiency scores indicate greater potential demand for alternative digital settlement infrastructure.

Several Sub-Saharan African markets rank prominently. Côte d’Ivoire leads with a score of 68.2 out of 100, followed by Angola at 66.1, the Central African Republic at 63.8, Togo at 62.7 and Vanuatu at 62.4. Benin, Sierra Leone, Namibia, Ghana, Chad, Senegal, Tanzania and The Gambia also appear among the 25 highest-ranked markets. According to the report, these results are consistent with regional settlement challenges and observed digital-asset adoption patterns.

However, demand potential should not be confused with issuance readiness. A high ranking indicates where the economic case for local-currency stablecoins may be strongest, but it does not necessarily mean that a market has the regulatory, technical or operational capacity to launch one successfully.

Closing this gap will require clear policies, appropriate regulation, reliable financial infrastructure and strong institutional participation.

What This Means for Africa

The implications for African markets are significant. The report ranks several African economies among the jurisdictions with the strongest structural demand for local-currency stablecoins. This reflects challenges such as limited correspondent banking, underdeveloped foreign-exchange services and settlement delays affecting trade and remittance flows.

Across a continent where remittances, cross-border trade and currency volatility are important economic realities, compliant and well-regulated local-currency stablecoins could provide faster settlement, reduce exposure to exchange-rate movements and improve access to financial services. The objective would not be to replace the US dollar, but to ensure that African currencies remain relevant as more financial activity moves onto digital settlement networks.

Realising this potential will require a supportive fintech environment, reliable banking access for virtual asset service providers and clear rules governing stablecoin issuance, custody, reserves and redemption. The report emphasises that regulatory clarity does not always require entirely new legislation; transparent treatment under existing financial frameworks may also provide the certainty institutions need.

Governments could also consider frameworks that permit local stablecoin issuance while limiting redemption to domestic currency. With strong know-your-customer and anti-money-laundering controls, such models could support local liquidity while reducing the risk of capital flight.

Strategic Implications for Market Participants

Standard Chartered and Zodia Markets identify three key implications for corporates, financial institutions and policymakers.

First, digital settlement infrastructure continues to expand across currencies. Institutions that ignore this shift risk becoming disconnected from emerging payment and trade corridors.

Second, stablecoin diversification could become structural rather than speculative. As the overall market grows, even modest movement beyond US dollar-backed stablecoins could create meaningful liquidity for alternative currencies.

Third, early positioning matters. Institutions that develop compliant issuance, custody, liquidity and cross-border settlement capabilities may secure long-term advantages in emerging digital-currency markets.

The report highlights Anchorpoint as an example of this transition. Standard Chartered is its largest shareholder, and the company received a stablecoin issuer licence from the Hong Kong Monetary Authority. Its planned regulated Hong Kong dollar-backed stablecoin, HKDAP, demonstrates how regulatory clarity, institutional participation and public-private collaboration can turn policy discussions into practical implementation.

Conclusion

The central finding of Beyond Concentration is not that US dollar-backed stablecoins will lose their dominance anytime soon. Instead, the continued growth of the stablecoin market is creating significant opportunities for local-currency alternatives, particularly in markets often considered less prepared for digital financial innovation.

The next phase of stablecoin development may therefore be determined not by whether the dollar remains dominant, but by which domestic currencies successfully establish a presence within the evolving digital financial system.

For African markets, this is an opportunity to act early by developing clear regulations, reliable financial infrastructure and strong institutional partnerships before emerging digital-payment corridors are shaped by others.

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