Noah, a regulated digital assets platform, and Nafolo, a cross-border payments firm, have launched a service offering stablecoin-denominated virtual accounts, targeting the high costs and inefficiencies of moving money within Sub-Saharan Africa. The service, announced on March 7, 2026, allows users to hold, send, and receive value in USDC, a dollar-pegged stablecoin, through local payment rails in countries including Ghana, Kenya, Nigeria, and South Africa.

The partners state that the service is designed to bypass the traditional correspondent banking network, which they identify as a primary source of delay and expense for cross-border transactions on the continent. By using virtual accounts linked to stablecoins, they aim to provide near-instant settlement and lower fees for both individual remittances and business-to-business payments. Noah, which holds a Virtual Asset Service Provider license from South Africa's Financial Sector Conduct Authority, will custody the digital assets, while Nafolo manages the fiat on- and off-ramps through local bank integrations.

The launch comes amid sustained focus on improving regional payment systems, driven by the African Continental Free Trade Area's goals of boosting intra-African commerce. High remittance costs remain a significant barrier, with the World Bank noting that sending money within Sub-Saharan Africa is often more expensive than sending funds from outside the region. Several fintechs and mobile money operators have been developing alternative corridors, with digital currencies and blockchain-based settlement seen by some industry participants as a potential path to greater efficiency.

In a separate development highlighting investor interest in African fintech innovation, Zambian neobank Lupiya announced an extension of its Series A funding round, bringing the total raise to $11.25 million. The extension was led by the French public investment bank Bpifrance, through its Africa Digital Ventures II fund, with participation from existing investors. Lupiya, which provides digital lending and financial services, stated the capital would be used to expand its product offerings and reach more customers in Zambia, where a significant portion of the population remains underserved by traditional banks.

The stablecoin account service from Noah and Nafolo enters a competitive and evolving regulatory landscape. While the South African Reserve Bank has been progressing with a regulatory framework for crypto assets, other jurisdictions on the continent are at various stages of developing their own rules. The partners emphasize that their offering is built for compliance, operating within the licensed frameworks of the markets they serve. They argue that by tying the service to a regulated stablecoin and established local payment methods, they mitigate the volatility often associated with cryptocurrencies.

Initial use cases for the virtual accounts are expected to include diaspora remittances, freelance payments, and settlements for small and medium-sized enterprises engaged in regional trade. The service will be accessible directly to consumers and also offered as an application programming interface for businesses and other fintechs to integrate into their own platforms. The success of the model will likely depend on achieving sufficient liquidity, user adoption, and navigating the diverse regulatory requirements across multiple African markets.