The cryptocurrency ecosystem has evolved far beyond its early promise of digital gold and speculative trading. What started as a niche experiment in decentralized money has spawned an entire system of practical applications that solve real-world problems. Today, some of crypto’s most compelling use cases can be found in the bustling city of Lagos, the remittance corridors between Mexico and the United States, and the trade routes connecting Southeast Asia to the rest of the world.

At the center of this transformation are stablecoins. These dollar-pegged digital currencies have become the backbone of a new financial infrastructure that’s particularly impactful in emerging markets. Millions of people in Africa, Latin America, and Southeast Asia are already using stablecoins to move money, protect their savings, and conduct business across borders.

The numbers underscore this shift: stablecoins now account for 43% of all cryptocurrency transaction volume in Sub-Saharan Africa, driven largely by currency devaluation and foreign exchange shortages. Ethiopia alone has seen a 180% rise in stablecoin transfers following a 30% currency devaluation, making it the region’s fastest-growing adopter of retail-size stablecoin transfers.

Research involving crypto users from Brazil, Nigeria, Turkey, Indonesia, and India found that stablecoins serve purposes beyond just crypto trading even though that’s still the leading motive for its use. Survey results indicated that 69% of respondents converted local currencies to stablecoins, while 39% used them for purchasing items or transferring money internationally to relatives. Additionally, 30% integrated stablecoins into their business operations, and 23% paid or received salaries in stablecoins.

But raw adoption only tells part of the story. The real opportunity lies in understanding why stablecoins have found such fertile ground in emerging markets and how businesses can build sustainable value propositions around this growing demand.

The Reality Check: Stablecoins Aren’t Banking the Unbanked

Let’s get one thing straight: stablecoins won’t “bank the unbanked.” That narrative was always oversimplified. Instead, they’re serving a much more practical and immediate need—providing better financial tools for people who already have some access to financial services but want something faster, cheaper, and more reliable.

This is about the “underbanked.” These are individuals and businesses that have bank accounts but face high fees, slow transfers, and unreliable service when they need to move money across borders or protect their savings from inflation. That’s a much larger and more accessible market than you might think.

The Core Use Cases Driving Real Adoption

1. Cross-Border Payments and Remittances

Traditional international money transfers are built on a system designed in the 1970s. When someone in New York wants to send $200 to their family in Manila, that money doesn’t travel directly. Instead, it winds through a complex web of correspondent banks, each taking fees and adding delays. The sender’s bank needs to find a bank that has relationships with Philippine banks, which then needs to process the transfer through local clearing systems. The result? A $200 transfer becomes $180 after fees, takes three to five business days, and often requires the recipient to travel to a physical bank branch to collect the money.

This system breaks down completely in many emerging market corridors. Banks in smaller African or Latin American countries often lack direct correspondent relationships with major international banks, forcing transfers through even more intermediaries. A transfer from London to Accra might route through banks in three different countries, with each step adding cost and time.

Stablecoins eliminate this entire chain of intermediaries. When someone sends USDT from New York to Manila, the transaction settles on the blockchain within minutes. The recipient can then convert the stablecoin to Philippine pesos through local exchange platforms that have sprung up to serve this exact need. The total cost is typically 2-3% instead of 8-12%, and the money arrives in minutes instead of days.

The infrastructure supporting this transformation has reached genuine scale. Off-ramp platforms that convert stablecoins to local currencies are seeing dramatic growth, with some doubling their transaction volumes year-over-year. Local exchange platforms across emerging markets have built sophisticated systems to convert dollar-backed stablecoins like USDT and USDC into local currencies within minutes.

Small businesses importing goods are using the same infrastructure to pay overseas suppliers. A textile shop in Lagos can now pay a manufacturer in China using stablecoins, bypassing the expensive and slow traditional banking system entirely. The supplier receives payment almost instantly, improving cash flow for both parties.

2. Inflation Protection

Inflation in emerging markets is a daily reality that destroys people’s ability to save and plan for the future. When Turkey’s lira lost 44% of its value against the dollar in 2021, or when Nigeria’s naira weakened by over 70% in 2023, holding local currency became a guaranteed way to lose purchasing power.

Traditionally, people in these situations had limited options. Those with access to foreign bank accounts could hold dollars directly, but this required substantial minimum balances and was often restricted by capital controls. Others turned to physical dollars, but this created security risks and made transactions difficult. Some bought gold or other physical assets, but these were illiquid and hard to use for daily transactions.

Stablecoins solve these problems elegantly. A small business owner in Argentina can convert their excess pesos to USDC through a local exchange, protecting their savings from peso devaluation. Unlike holding physical dollars, the USDC can be easily spent online, transferred to suppliers, or converted back to pesos when needed. The process is faster and cheaper than traditional foreign exchange, and the funds remain accessible 24/7.

The adoption data confirms this behavior. In Sub-Saharan Africa, stablecoin transactions account for 43% of total crypto volume as of October 2024, driven largely by currency devaluation concerns. Countries experiencing high inflation show disproportionately high stablecoin adoption rates. Nigeria, Argentina, and Turkey consistently rank among the top countries for stablecoin usage, correlating directly with their inflation rates and currency instability.

This trend extends beyond individual savers to small businesses. Companies operating in high-inflation environments are increasingly denominating their prices in dollar terms while accepting local currency payments. They immediately convert local currency receipts to stablecoins, maintaining stable pricing power even as local currencies fluctuate. This is particularly common in countries with frequent currency devaluations, where businesses need to protect their working capital from overnight losses.

3. Business-to-Business Trade

International trade finance remains stuck in the analog age. When a company in Kenya wants to import machinery from Germany, the payment process involves letters of credit, wire transfers through correspondent banks, and settlement times measured in days or weeks. Each step requires manual documentation, bank approvals, and significant fees. For smaller businesses, accessing trade finance products like letters of credit is often impossible due to high minimum amounts and strict collateral requirements.

These inefficiencies are most pronounced in South-South trade—commerce between emerging markets. A company in Brazil selling coffee to a buyer in Vietnam faces even more challenges than trade with developed markets. The banks in both countries may lack direct relationships, forcing payments through expensive correspondent banking chains. Currency volatility in both markets adds another layer of complexity, as exchange rates can move significantly during the extended settlement periods.

Stablecoins are transforming this reality by providing a common settlement currency that works across borders. Import-export businesses are increasingly using USDT or USDC to settle international transactions, eliminating the need for complex correspondent banking relationships. A manufacturer in Vietnam can receive payment from a Brazilian customer in USDC, convert it to Vietnamese dong through local exchanges, and have access to funds within hours instead of weeks.

This shift is particularly visible in trade corridors where traditional banking infrastructure is weakest. African importers buying goods from Chinese manufacturers are increasingly settling payments in stablecoins. The Chinese suppliers, who often maintain multi-currency operations anyway, can easily accept USDT payments and convert them to yuan through domestic exchanges. The African importers avoid the high fees and delays of traditional wire transfers while getting faster access to their purchases.

The impact extends beyond simple payments to more sophisticated trade finance products. Companies are beginning to use stablecoins as collateral for trade loans, issue invoices denominated in stablecoins, and even create smart contracts that automatically release payments when shipment conditions are met. This is enabling smaller companies to access trade finance tools that were previously only available to large corporations with established banking relationships.

The Stablecoin-Based Business Opportunities Are Concrete

1. Infrastructure and Platforms

The foundational layer represents the largest immediate opportunity. Payment processing platforms that seamlessly convert between stablecoins and local currencies are experiencing explosive growth. The key differentiator is abstraction. Successful platforms hide blockchain complexity entirely from end users.

a. Payment Processing Solutions: Build gateways that accept stablecoin payments and settle in local currencies. This includes both online and point-of-sale integrations that work like traditional payment processors but offer lower fees and faster settlement.

b. API and Developer Tools: Create robust APIs that allow other businesses to integrate stablecoin functionality without blockchain expertise. The most successful platforms provide simple REST APIs that handle wallet creation, transaction processing, and currency conversion automatically.

c. Wallet and Custody Services: Develop enterprise-grade custody solutions for businesses holding stablecoins. This includes multi-signature security, compliance reporting, and integration with existing accounting systems.

d. Liquidity Infrastructure: Build the underlying liquidity pools that enable instant conversion between stablecoins and local currencies. This requires partnerships with local banks and money service businesses.

2. Financial Services Innovation

Beyond basic payments, the real opportunity lies in rebuilding traditional financial services with stablecoin infrastructure.

a. Lending Platforms: Create credit facilities using stablecoins as both collateral and loan currency. This is particularly powerful when combined with real-world asset tokenization, allowing borrowers to use property, vehicles, or inventory as collateral for stablecoin loans.

b. Savings and Investment Products: Develop dollar-denominated savings accounts backed by stablecoins, offering protection against local currency devaluation. This can include fixed-term deposits, automated savings plans, and investment products that provide yields in stable currencies.

c. Insurance and Risk Management: Build insurance products that pay out in stablecoins, protecting against currency risk, trade disruptions, and other emerging market challenges.

d. Micro-Investment Platforms: Enable fractional investment in global assets using stablecoins, allowing users with small amounts of capital to access diversified investment opportunities previously only available to institutional investors.

3. Vertical-Specific Solutions

Each industry has unique stablecoin needs that represent focused business opportunities.

a. E-commerce Integration: Build checkout systems that accept stablecoins globally while settling merchants in local currency. Include features like automatic tax calculation, fraud protection, and chargeback handling.

b. Supply Chain Finance: Create platforms that use stablecoins to finance inventory purchases, supplier payments, and trade credit. This is particularly valuable in agricultural markets where seasonal cash flows create financing needs.

c. Gig Economy Payments: Develop instant payment solutions for freelancers, delivery drivers, and other gig workers who need immediate access to earnings without waiting for traditional payment processing cycles.

d. Real Estate and Property: Build platforms for property transactions using stablecoins, including escrow services, fractional ownership, and cross-border property investment.

e. Healthcare Financing: Create medical payment systems that work across borders, allowing patients to pay for treatment in stable currencies regardless of local economic conditions.

What Successful Companies Are Building

The companies succeeding in this space share common characteristics that provide a clear playbook for new entrants:

1. Simple user interfaces that hide blockchain complexity

The most successful platforms make stablecoins feel like traditional digital payments. Users never see wallet addresses, don’t choose blockchain networks, and don’t manage private keys. The interface looks and feels like a banking app.

2. Strong local partnerships and regulatory compliance

Winners engage proactively with local regulators and financial institutions rather than trying to operate in regulatory gray areas. They obtain proper licenses, implement KYC/AML procedures, and work within existing financial frameworks.

3. Focus on solving specific, immediate problems

Rather than building general-purpose platforms, successful companies identify one clear use case—like remittances or trade finance—and solve it completely before expanding to adjacent services.

4. Integration with existing financial infrastructure

The most adopted solutions work alongside traditional banking rather than trying to replace it. They connect to local banking systems, support familiar payment methods, and provide customer service in local languages.

5. Transparent fee structures and competitive pricing

Users need to understand exactly what they’re paying and why it’s better than alternatives. Successful platforms clearly communicate their value proposition in terms of cost savings and speed improvements.

6. Robust technical infrastructure

Winners invest heavily in reliable, scalable systems that can handle high transaction volumes without downtime. They also implement strong security measures and have clear incident response procedures.

Strategic Framework for Business Entry

1. Market Research and Validation

Emerging markets may share similar economic challenges, but each operates differently. For example, stablecoin use in the Philippines centers on remittances, while in Argentina it’s about preserving value in the face of inflation. In Nigeria, small businesses are using stablecoins for international trade. Success requires deep, localized research, not just broad market data.

Go beyond surveys. Engage directly with users. Ask how they send money, manage savings, and what they do when banks or apps fail. Understanding the informal systems people rely on is just as important as analyzing formal financial institutions.

When mapping the competitive landscape, don’t stop at crypto companies. Include traditional banks, mobile money providers, and informal money transfer networks. Identify what’s missing, what’s broken, and why existing solutions haven’t solved the core problems. Also, assess which companies are operating with regulatory clarity and which are skating on thin ice.

Studying regulation means more than reading published laws. In many countries, enforcement is inconsistent or politically influenced. Work with local legal experts, maintain open lines with regulators, and design your business to adapt quickly as rules evolve. Avoid relying on legal grey areas that may not last.

2. Product Development Strategy

Design for Local Realities

Assuming a global product can be lightly localized is a common mistake. Many users in emerging markets have limited internet access, use older phones, and have little experience with financial apps. Build from the ground up with these realities in mind.

Focus Your MVP

Launch with a single, clearly defined use case. If you’re building a remittance app, focus exclusively on person-to-person transfers. Resist the urge to layer in savings, lending, or merchant tools too early. Doing so risks diluting your product before you’ve proven core value.

Prioritize Ease of Use

Design for first-time users. Use clear visuals, plain language, and intuitive workflows. Avoid jargon. Test your interface with real users from your target market, not just internal staff or tech-savvy testers.

Engineer for Constraints

Design for patchy internet, low bandwidth, and basic devices. Include features like offline transaction queuing, lightweight data sync, and support for SMS-based interactions where needed. Your product must perform reliably under real-world conditions.

3. Regulatory and Compliance Approach

Be a Partner, Not Just a Participant

In many emerging markets, regulators are still learning how to manage crypto. Don’t just follow the rules. Work to build trust. Demonstrate that you’re serious about user safety, responsible innovation, and long-term collaboration.

Engage Early

Begin conversations with regulators before your product goes live. Share your business model, seek feedback, and demonstrate transparency. This early engagement often leads to better alignment and fewer surprises.

Embed Compliance in Your Core System

Treat compliance as a foundational part of your architecture, not an afterthought. Build KYC flows to match local requirements, set up AML monitoring based on country-specific risks, and implement audit-ready reporting tools from day one.

Plan for Change

Regulatory environments evolve quickly. Research not just what licenses you need today but what’s likely to emerge. Build your systems and processes to adjust quickly as the legal landscape matures.

4. Partnership Development

Leverage Local Expertise

Product quality alone won’t guarantee success. Strategic partnerships are critical, especially those that bring deep local market knowledge, strong distribution networks, or regulatory access. Focus on what cannot be built in-house.

Start Banking Relationships Early

Securing partnerships with local banks can be slow and requires transparency. Start small, possibly with regional or innovative banks that are more open to new technologies. Scale relationships as trust builds.

Partner with Money Service Businesses

MSBs often have the licenses, liquidity, and infrastructure needed to operate effectively in emerging markets. Collaborating with them gives you a faster route to market and a proven compliance base.

Use Tech Partners Strategically

Don’t build everything from scratch. Use third-party providers for services that are not core to your differentiation, such as custody, blockchain infrastructure, or compliance tooling. This lets you stay focused on what makes your product unique.

5. Risk Management Framework

Make Risk Management Core

Emerging markets come with unique risks such as currency volatility, infrastructure outages, and political instability. Managing these risks should be part of daily operations, not a separate function.

Manage Liquidity and Currency Exposure

When moving between stablecoins and local currencies, price swings and liquidity shortages can hit hard. Maintain solid reserves, use hedging tools when possible, and implement real-time monitoring to react quickly during market stress.

Prepare for Operational Disruptions

Plan for challenges such as power cuts, internet blackouts, or civil unrest. Build backup systems, maintain crisis response protocols, and have local legal and security support ready to engage when needed.

Track Regulatory Shifts Closely

Keep a constant watch on regulatory changes. Your product should be flexible enough to adapt quickly. Maintain close ties to legal advisors and develop contingency plans for multiple regulatory scenarios.

6. Scaling Strategy

Master One Market First

Don’t rush to launch in multiple countries. Focus on one market, solve a real problem completely, and build trust. Only then should you expand carefully and strategically.

Choose Markets with Similar Dynamics

Expand into markets with similar regulations, customer behavior, and infrastructure. If you succeed in Nigeria, West African neighbors might be a better next step than jumping continents.

Grow Your Product Line Gradually

Once your core product has traction, add services that meet related needs, such as bill payments or savings tools. Stick close to your original user base and solve problems adjacent to your first offering.

Balance Local and Remote Teams

Hire locally for regulation, support, and partnerships. These roles require cultural knowledge and on-the-ground trust. Product and engineering can be remote but must stay aligned with local insights.

Plan for Long Investment Cycles

Emerging markets often require more time and capital. Plan for extended customer acquisition cycles, higher support costs, and up-front investments in infrastructure, compliance, and licensing.

7. Technology Architecture Decisions

Prioritize Stability Over Novelty

Choose tools that are proven and reliable, even if they are not the newest or fastest. Once you commit to a tech stack in these markets, changing it is difficult. Make decisions that can withstand long-term stress.

Use Trusted Blockchain Infrastructure

Select networks with a solid history of uptime, fair transaction costs, and active developer support. Avoid untested chains, even if they promise lower fees or higher speeds.

Build for Interoperability

Design systems that work across multiple chains and stablecoins. This gives you flexibility to adapt as costs, regulations, or network performance change.

Implement Strong Monitoring Systems

Build real-time dashboards to track transactions, user behavior, and system health. Use alerts to detect and respond to issues quickly, especially since users may not report problems directly.

Design for Rapid Growth

Once you find product-market fit, growth can happen quickly. Make sure your systems can handle ten times the expected load. Use auto-scaling where possible and stress-test early.

Charting the Path Forward

The stablecoin opportunity in emerging markets is about practical solutions to everyday problems. People need faster, cheaper ways to move money across borders. Businesses need better trade finance options. Savers need protection from inflation.

As a business, the question is whether you’ll be part of building the infrastructure that supports this growth or watching from the sidelines.

Success in this space requires robust, scalable infrastructure that can handle the complexity of multi-blockchain operations while providing the security and compliance features that institutions demand. At Bitpowr, we’ve seen firsthand how critical reliable wallet infrastructure becomes when businesses scale from thousands to millions of users across emerging markets. Our platform enables institutions and developers to manage secure digital asset operations at scale across multiple blockchains. This is exactly the kind of foundational infrastructure that powers the stablecoin adoption we’re seeing today.

The opportunity is concrete, measurable, and happening now. The businesses that move quickly and focus on solving real problems—backed by enterprise-grade infrastructure—will capture the most value as this market continues to expand.