Busha Business, a leading Nigerian cryptocurrency exchange, has announced a strategic collaboration with Tether, the company behind the world's largest stablecoin USDT, to expand stablecoin infrastructure for African businesses. The partnership aims to address the continent's cross-border payment challenges and drive financial inclusion.
Partnership Details
Under the agreement, Busha Business will integrate Tether's USDT into its platform, enabling African businesses to make instant, low-cost international transactions. According to the CEO of Busha, Moyo Ogunlewe, “This collaboration is a significant step towards providing African businesses with the tools they need to thrive in the global economy. Tether's stablecoin infrastructure will help reduce the friction associated with traditional banking systems.”
Tether will provide liquidity and technical support to ensure seamless adoption. The partnership targets small and medium-sized enterprises (SMEs) that often face high fees and delays in cross-border payments. According to a 2023 World Bank report, remittance costs in Sub-Saharan Africa average 8.2%, significantly higher than the global average of 6.3%.
Impact on African Businesses
The collaboration is expected to lower transaction costs and settlement times. African businesses can now send and receive payments in USDT, bypassing traditional correspondent banking networks. “This is not just about technology; it's about empowering African entrepreneurs to participate in global trade without barriers,” added Ogunlewe.
Busha Business already serves over 200,000 users across Nigeria and Ghana. The partnership with Tether is part of a broader push to promote stablecoin adoption in emerging markets. Tether's CTO, Paolo Ardoino, stated, “Africa is a key region for stablecoin adoption due to its young population and mobile-first economy.”
Broader Context
The move comes amid increasing regulatory scrutiny of cryptocurrencies in Nigeria. However, stablecoins like USDT have gained traction as a hedge against currency volatility. The Nigerian naira has depreciated by over 40% against the US dollar in the past year, driving demand for dollar-pegged assets.
Industry experts view the partnership as a catalyst for blockchain-based financial services in Africa. According to a report by Chainalysis, Africa is the fastest-growing cryptocurrency market, with a year-over-year increase of 1,200% in some countries.
