South Africa’s leading exchange, VALR, has collaborated with Mukuru, a leading global fintech company, to expand access to stablecoin infrastructure in South Africa by introducing a USD Coin (USDC) wallet.
The USDC wallet will be accessible through Mukuru’s WhatsApp platform, where millions of users will be able to easily buy, hold, and sell USDC, reducing their exposure to local currency fluctuations.
Farzam Ehsani, co-founder and CEO of VALR, stated,
“VALR is proud to support Mukuru with the crypto infrastructure needed to launch this offering. This partnership is a profound step toward realising our shared vision of an inclusive financial ecosystem that unites humanity, advancing financial services in society.”
Mukuru currently serves over 17 million customers across Africa, Asia, and Europe, and this partnership enables it to leverage its broad network to provide alternative saving and investment options for South Africans.
Andy Jury, Group CEO of Mukuru, added
“This partnership with VALR is a clear step forward in our strategy to enable Africa’s emerging consumers to send, store, and spend value seamlessly. It reflects Mukuru’s evolution into a platform that not only facilitates everyday financial transactions but also opens doors to savings and investment opportunities.
The State of Stablecoin Adoption and Regulation in South Africa
Sub-Saharan Africa accounts for 43% of global stablecoin transactions, with Nigeria and South Africa in the lead. Businesses and institutions are increasingly accepting USDC and USDT for faster settlements and cross-border remittances.
Notably, South Africa has also witnessed a rise in the issuance of rand-pegged stablecoins, with three currently in operation: ZARP, ZARC, and yZar, and Super Group’s Super Coin on its way to launch.
Moreover, the regulatory environment for stablecoins and digital assets in South Africa has recently become progressive.
In 2022, cryptocurrencies were officially classified as financial products and placed under the authority of the Financial Sector Conduct Authority (FSCA), South Africa’s financial regulatory authority.
The FSCA began licensing crypto asset service providers (CASPs) in 2024 and has issued over 200 licenses, including to VALR. This licensing model has facilitated the entry of crypto exchanges and other service providers, boosting blockchain innovation in the country.
Still within 2024, South Africa established a working group to evaluate the use of stablecoins and their regulatory implications.
Earlier this year, the Travel Rule was enforced, which required CASPs to collect sender and recipient information for transactions above 5,000 rand. This aligns with the global Financial Action Task Force (FATF) standards.
However, South Africa slightly lags behind other African countries such as Kenya and Ghana, which have advanced further toward more encompassing and comprehensive virtual asset regulations.
Nonetheless, the recent strategic partnerships between TradFi and blockchain institutions, as well as ongoing progressive moves towards regulation in South Africa, highlight a promising future for stablecoin adoption in the country
