Nigerian banks, asset managers and financial technology companies are exploring opportunities to introduce stablecoin and other digital asset services as cryptocurrency adoption expands across the country.
Buchi Okoro, Co-founder and Chief Executive Officer of Quidax, said financial institutions were increasingly considering how to integrate digital assets into their services to meet changing customer needs.
He disclosed this during an industry engagement on stablecoins and digital assets hosted by Quidax in partnership with Tether, the issuer of USDT, in Lagos.
Okoro said Quidax was positioning itself to support institutions entering the digital asset market through infrastructure, business education and regulatory compliance.
Stablecoins are digital currencies designed to maintain a relatively stable value by being linked to assets such as the US dollar. They are increasingly used for international transfers, cross-border payments and transactions involving dollar-linked assets.
Nigeria has emerged as a major market for digital asset activity, with individuals and businesses increasingly using cryptocurrency platforms to facilitate international transactions and manage exposure to foreign exchange fluctuations.
However, the growing adoption of stablecoins has raised concerns about financial regulation, investor protection, money laundering and the potential impact of digital dollarisation on monetary policy.
John Briggs, Head of the Securities and Exchange Commission’s Lagos Zonal Office, said regulatory oversight and investor protection were becoming increasingly important as digital asset activity expands.
He stressed that the future of digital finance in Nigeria must be built on trust, transparency and compliance with established regulatory standards.
The SEC has continued efforts to bring digital asset operators under its regulatory framework, while financial institutions considering stablecoin services are expected to address customer verification, transaction monitoring and asset custody requirements.
The growing institutional interest could create new opportunities for Nigeria’s financial services industry, particularly in cross-border payments and digital financial inclusion, while making effective regulation essential to protecting consumers and maintaining financial stability.
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