Visa and Yellow Card Launch Africa Stablecoin Settlement: Crypto Treasury Boost

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In Brief

• Visa crypto settlement with Yellow Card enables instant, low-cost stablecoin transactions, reducing FX risk for African businesses.
• Visa Direct integration allows corporations to hold USD liquidity in stablecoins, bypassing traditional banking delays and currency volatility.
• The partnership plans to launch a tailored stablecoin product in 2025, positioning Africa as a hub for digital asset innovation.

With stablecoins steadily becoming an increased alternative for freelancers, businesses, and merchants across Africa, Yellow Card, one of Africa’s leading platforms, has recently announced another strategic partnership with global payments giant Visa.

The main aim of this collaboration is advancing Visa crypto settlement capabilities across the continent, further boosting stablecoin use.

Additionally, it integrates stablecoin technology into mainstream treasury and payments operations while leveraging Yellow Card’s established regulatory footprint.

Announcing the Visa-Yellow Card Partnership

In a recent study, stablecoins almost comprise half of Africa’s crypto transaction volume.

Its convenience, global market reach, stability, and low transaction fees have enhanced the hearts of many traders, merchants, and freelancers.

The core objective of this alliance is really clear: to grow and facilitate this wave of adoption in Africa.

Yellow Card is a giant within Africa’s crypto ecosystem, with the firm providing regulated access to digital assets across 20+ African nations.

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Today, many new to the space are eager to join Africa’s fertile ground for stablecoin innovations but face various barriers.

Visa, recognizing the growing imperative for digital asset strategies within traditional finance, sees Africa’s unique challenges: foreign exchange volatility and protracted settlement times.

Chris Maurice, co-founder and CEO of Yellow Card, stated,

“Traditional payment companies continue to question not ‘if’ they need a stablecoin strategy, but how quickly they can deploy one. We are thrilled to partner with Visa to help realize the potential of stablecoins technology in emerging economies.”

Leveraging its global reach and Yellow Card infrastructure, the platform seeks to tap into the growing demand for stablecoins in Africa.

How Visa Direct Integration Powers New Settlement Flows

A core technical component behind this powerful collaboration is the planned Visa Direct integration.

Visa Direct is Visa’s solution for fast,push-to-card payments globally.

The collaboration will test how Yellow Card’s stablecoin-based cross-border infrastructure can connect seamlessly with Visa Direct.

This creates a direct pathway for businesses and individuals to plug into Visa’s vast network, tapping into a global market.

The Visa crypto settlement mechanism will enable companies to manage treasury operations across multiple African countries, avoiding unnecessary hurdles like navigating various currencies, banking corridors, and potential delays.

With the Visa Direct link, corporations can potentially hold USD liquidity in stablecoin form.

This approach reduces direct exposure to fluctuating local FX rates(FX risk) plus significantly cuts down the time lag inherent in traditional international wire transfers.

As Gillian Darko, Yellow Card’s Chief of Staff and Director of Strategy, explains:

“Very simply put, corporations, companies, and some of our partners will now be able to utilize stablecoins if they’re plugged into Visa… Corporates can hold USD liquidity in stablecoin form, reducing FX risk and transaction lag. Now, Visa and Yellow Card will be working together to see how to simplify that even better.”

Leveraging Yellow Card Infrastructure for Local Reach

Yellow Card infrastructure has formed the bedrock of Africa’s crypto industry.

The platform boasts numerous functionalities as a licensed payment platform made by Africa for Africa.

Thus, the firms understand the unique challenges locals face while still navigating the region’s growing regulatory environments.

Yellow Card, at the time of writing, holds licenses in key markets like Botswana, South Africa, and Zambia, with applications pending in others, including Nigeria and Ghana.

Their existing regulatory compliance and physical presence are invaluable to Visa and any global payment platforms since it brings a hurdle many aren’t ready for.

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Visa will leverage this established Yellow Card infrastructure, including its network, local operations, and existing stablecoin support – to deploy its settlement solutions.

Darko emphasized this point:

“[Visa] is using Yellow Card’s support as we currently support a variety of stablecoins … They are leveraging our network, operations, and stablecoins to be able to do this.”

A Step Towards Frictionless Finance

In terms of advantages, businesses can look forward to enhanced crypto treasury management via stablecoins, allowing firms to hold dollar-pegged digital assets.

This acts as a hedge against local currency devaluation(mitigating FX risk), providing a more predictable unit of account across borders.

Additionally, the partnership creates more accessible stablecoin liquidity solutions.

With Yellow Card’s existing network coupled with access to the Visa network, businesses can move funds faster with lower costs as compared to traditional banking platforms.

The Visa Yellow Card partnership also introduces a new perk. The collaboration intends to launch a specific stablecoin product in at least one African country before the end of 2025.

The key aim is to build a reliable cross-border stablecoin payments infrastructure tailored to regional needs.

Godfrey Sullivan, SVP and Head of Product and Solution for CEMEA at Visa, echoed this, stating,

“We believe that every institution that moves money will need a stablecoin strategy.”

If successful, this model could pave the way for broader adoption of stablecoins as a legitimate tool for efficient crypto treasury management and seamless cross-border commerce across the continent, demonstrating the practical evolution of Visa’s digital asset strategy in high-potential emerging markets.