Kenya's licensed commercial bank Credit Bank PLC has entered a pilot partnership with stablecoin issuer Anzens to integrate the USDA dollar-backed stablecoin into its banking services. Subject to ongoing engagement with the Central Bank of Kenya (CBK), the initiative could make Credit Bank the first licensed commercial bank in an emerging market to directly mint, redeem, and distribute a stablecoin.
Cross-Border Fees Cut to 1.5%, Settlement in Minutes
Under the proposed model, Credit Bank customers can convert fiat currency to USDA and back, with international payments charged a flat 1.5% fee. Transactions settle within minutes and automatically convert into local currency at the destination. The bank will act as custodian for both Kenyan shillings and U.S. dollars, ensuring compliance while shielding users from blockchain complexity. SWIFT-based correspondent banking currently costs an average of 6.45%, rising to nearly 8% across sub-Saharan Africa, with settlement delays of up to five days.
Anzens CEO Shantnoo Saxsena highlighted the pain point: “A business in Nairobi trading with suppliers in Mumbai or Dubai should not pay 8% in fees and wait a week for payment to clear. With Credit Bank, that same transaction settles in minutes at 1.5%. That is what infrastructure is supposed to do.”
Soaring Remittances Fuel Stablecoin Demand
Kenya's cross-border payment flows are growing rapidly. Diaspora remittances hit a record $5 billion in 2024, overtaking tea and horticulture as the top foreign exchange earner. Inefficiency in traditional channels has driven adoption of alternatives: Kenyans processed $3.3 billion in stablecoin transactions in the year ending June 2024, and stablecoins now account for 43% of crypto activity across Africa. Yet regulated fiat-to-stablecoin conversion channels remain scarce.
Credit Bank CEO Betty Korir emphasized: “Stablecoins are not speculative assets in this context; they are settlement infrastructure. By acting as custodian for USDA, we are embedding that capability inside a regulated banking relationship, where it belongs.” She noted the partnership aims to boost the bank's competitiveness.
Tokenized Asset Payments Also in the Pipeline
The pilot extends into tokenized assets. Yeshara, operating under Kenya's Capital Markets Authority sandbox, is working with Anzens and Credit Bank to test USDA as a payment option for tokenized real estate and commodities.
Anzens holds both a regulated stablecoin and a global payments network. USDA is fully backed by U.S. dollars and treasuries, custodied by Bitgo Trust, covering 80 countries and 41 currencies with liquidity sourced through regulated institutions. The company is dual-licensed in Lithuania and Dubai, with compliance covering KYC, KYT, and institutional custody.