Tranzmit Payment Services has integrated Yellow Card’s Payments API to accelerate cross-border fund transfers between the United States and Nigeria using stablecoin settlement.
The move targets the inherent inefficiencies of traditional remittance and B2B payment corridors, which often rely on a complex network of correspondent banks that increase costs and prolong settlement times.
By leveraging stablecoins—digital assets pegged to a stable reserve like the US dollar—the partnership aims to provide a more streamlined alternative to the legacy SWIFT system for the USA-Nigeria corridor.
Tranzmit Payment Services, the payments arm of the US-based Tranzmit Corporation, will use the integration to facilitate near-instant settlement of funds. This approach allows the companies to bypass traditional banking intermediaries that typically require multiple days to clear international transactions.
The integration allows for the conversion of traditional currency into stablecoins for the transit phase of the transaction, which are then converted back into the local currency upon arrival in Nigeria.
Industry analysts note that this model reduces the risk of transaction failure and lowers the fees typically passed on to the end user, making it more attractive for both small businesses and individual remitters.
Stablecoin Infrastructure and Nigerian Regulation
The adoption of stablecoins for commercial settlement comes amid a shifting regulatory landscape in Nigeria. After a prolonged period of restriction, the Central Bank of Nigeria (CBN) lifted its ban on cryptocurrency transactions for banks in December 2023, though it maintains strict guidelines to mitigate money laundering and terrorism financing risks.
Yellow Card has positioned itself as a critical infrastructure provider in this space, focusing on providing compliant on-ramps and off-ramps for digital assets across multiple African markets.
The use of stablecoins for settlement is increasingly seen as a hedge against the volatility of the Nigerian Naira. Because stablecoins maintain a 1:1 peg with the US dollar, they provide a predictable medium for transferring value across borders without the immediate exposure to currency fluctuations during the transit period.
This partnership reflects a broader trend among fintechs to build “parallel rails” for money movement. Rather than attempting to fix the legacy banking system, companies are increasingly building new layers of financial plumbing using blockchain technology to achieve T+0 settlement.
The efficiency gains are particularly significant for SMEs that rely on timely payments to manage working capital. Traditional cross-border payments to Nigeria can take between three to five business days; stablecoin-based settlement can reduce this to minutes.
The reporting by BusinessDay indicates that the primary objective is to enhance the speed and reliability of the payment experience for users in both jurisdictions.
As Tranzmit and Yellow Card scale this integration, the focus will likely shift toward ensuring deep liquidity for the conversion process to ensure that the speed of the blockchain settlement is not hindered by delays in local currency payouts.
The companies are expected to monitor the rollout closely to ensure compliance with both US financial regulations and the evolving oversight framework provided by Nigerian authorities.
Further expansions of this model to other African corridors are expected as the companies seek to replicate the USA-Nigeria success in other high-volume remittance markets.
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