Anzens Acting COO – Kristina Vancova, Credit Bank CEO Betty
Korir and Yeshara Tokens Head of Business Development Jasmine Wairimu during
the signing ceremony
Businesses based
in Kenya and operating across borders may soon use their banks to make payments
in ccryptocurrencyshould a banking regulator approve a request by Credit Bank.
The lender is
seeking regulatory approval from the Central Bank of Kenya to pilot
crypto-based payment settlements, a move that could position it as the first
commercial bank in East Africa to integrate stablecoins into mainstream
banking.
The lender has
partnered with crypto payment provider Anzens to explore the use of USDA, a
dollar-backed stablecoin, in facilitating cross-border transactions.
Credit Bank CEO
Betty Korir said that by taping Anzens, the partnership will bring that
capability to make the payments inside a regulated banking space.
“Credit Bank has
always focused on providing our clients with the tools they need to compete
internationally. Stablecoins are not speculative assets in this context; they
are settlement infrastructure that can move value across borders in minutes
instead of days, at a fraction of the cost.
The move comes at
a time that the National Treasury has stepped up efforts to formalize oversight
of the country’s crypto sector, with the central bank and capital markets
authorities expected to share oversight of the crypto sector.
However, the
initiative remains at an exploratory stage and will only proceed if the
regulator gives the green light.
Under the proposed
model, customers of Credit Bank would be able to convert Kenyan shillings or US
dollars into USDA and use it to settle international payments, before
converting back into local currency at the destination.
The bank would act
as custodian of the funds, while the underlying blockchain infrastructure would
operate in the background.
“Kenya is home to
one of the most innovative financial ecosystems in the world, yet businesses
here still pay some of the highest cross-border payment fees globally while
waiting days for settlement. We are not asking banks to become crypto
companies,” said Anzens CEO Shantnoo Saxsena.
The move reflects
a broader shift in Kenya’s financial ecosystem, where businesses and
individuals are increasingly turning to digital assets to bypass inefficiencies
in traditional systems.
Industry estimates
indicate that Kenyans processed billions of dollars in stablecoin transactions
in the year to mid-2024, driven by currency volatility, high remittance costs
and the need for faster settlements.
Across Africa,
stablecoins now account for a significant share of crypto-related activity,
suggesting growing demand for alternatives to conventional cross-border payment
channels.
However, most of
this activity has taken place outside the formal banking system, raising
concerns among regulators over consumer protection, money laundering and
financial stability.
Kenya has not yet
fully integrated cryptocurrencies into its regulated financial system, and
authorities have previously taken a cautious approach, warning lenders against
direct exposure to digital assets.
If approved, the
model could significantly alter how Kenyan firms handle international trade
payments.
Small and
medium-sized enterprises, which often face the highest transaction costs, stand
to benefit from faster settlement times and potentially lower fees.
This could improve
cash flow and competitiveness, particularly for businesses importing goods or
paying overseas suppliers.
At the same time,
the development could intensify competition in Kenya’s payments space, where
fintech firms and mobile money platforms have already disrupted traditional
banking services.