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Nigeria’s external foreign exchange reserves have risen to around $49 billion as of February 5 2026, according to Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso.

The increase, a roughly 4.9% gain from prior levels, highlights a broader strengthening in Nigeria’s external position and renewed confidence in the economy.

 

A Reserves Rebound Amid Policy Reforms

Governor Cardoso announced the figures during the National Economic Council (NEC) Conference in Abuja, Nigeria. He noted that when the current leadership assumed control at the apex bank, Nigeria’s net foreign reserves were ‘about $3 billion,’ underscoring the scale of the build-up over the past months.

This growth coincides with policy shifts at the CBN aimed at increasing market-driven foreign exchange flows. Under the revised approach, the bank allows the FX market to largely determine prices, intervening only to buy foreign currency when necessary, a move that has helped narrow the gap between official and parallel market exchange rates to under 2%.

REGULATION | Nigerian Central Bank Forms Task-Force to Double Remittances, Lower Transaction Costs, and Standardize Compliance

Recall that in early 2025, the Nigeria government blamed Binance, the world’s largest cryptocurrency exchange, for the country’s currency challenges, slapping a $81.5 billion lawsuit on the exchange for economic losses. Nigeria has claimed Binance had a ‘significant economic presence’ in the country and influenced the exchange rates for the Naira.

REGULATION | Nigeria Sues Binance for $81.5 Billion in Economic Losses and Unpaid Taxes

Binance has exited the market since with speculation on whether that departure has helped fuel the rise in Naira valuation.

Diaspora Remittances, FX Market Reforms Fuel Gains

Cardoso emphasized the role of remittances from Nigerians abroad in supporting reserve accretion, describing them as a crucial source of foreign exchange. According to CBN commentary, engaging with the diaspora and facilitating easier cross-border flows has driven inflows that now make up a meaningful share of reserve accumulation.

These inflows arrive alongside broader trends in Nigeria’s external sector, with data from independent trackers showing reserves pushing above $47 billion, the highest in nearly eight years, as recent macro-economic adjustments take effect.

‘Those Who Feel They Have to Look for Other Means to Send Money Back Home No Longer Have To,’ Says Governor, Central Bank of Nigeria

Why Foreign Reserves Matter

Foreign exchange reserves serve as a buffer for countries, helping to stabilise their currency, meet external obligations, and cushion the economy against external shocks. In a country like Nigeria where oil exports dominate FX earnings and currency volatility has historically been a challenge, robust reserves are seen as an anchor for credibility and monetary stability.

A stronger reserve position also underpins investor confidence and provides the CBN with greater firepower to manage exchange rate pressures and liquidity, particularly important given ongoing efforts to normalise FX markets.

Economists and analysts now point to a continued build-up in reserves through 2026, with optimistic projections suggesting Nigeria could surpass $50 billion if current inflows persist and reforms continue to gain traction.

REGULATION | The Central Bank of Nigeria (CBN) Sets Up a Dedicated Working Group to Study Stablecoin Adoption in the Country

 

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The CEO of Flutterwave, Olugbenga ‘GB’ Agboola, has spoken about the company’s latest move to build stablecoin rails on top of its existing and compliant fiat rails.

Speaking at the 2026 World Economic Forum in Davos, GB said stablecoins speed up settlement times and in turn enables more turnaround and trade opportunity across the entire sales cycle.

 

Explaining how stablecoins work, GB said:

“Money doesn’t actually move, instruction moves, and when you use blockchain to move that instruction, you are creating a transparent way to move money without sacrificing the fiat guard rails. 

What it literally does is make it easier and quicker to move money especially in emerging markets where money movement is very very key dependent for growth in the economy.”

FINTECH AFRICA | ‘Stablecoin Adoption Has the Potential to 10x the Volumes We’re Currently Doing,’ Says CEO, Flutterwave

Being the most licensed non-bank fiat company in Africa and operational over the last 10 years, GB explained that the introduction of stablecoins does not change the company’s operations.

“When it comes to stablecoins, nothing is changing in our customer experience. You want to send money from Nigeria to South Africa or the United States, nothing is changing. 

What is changing is under the hood. We’re making it quicker and faster to move that money from the send to the business via stablecoin rails, via USDC, which is regulated, backed by the dollar, and just makes its quicker and faster.

Unlike most FIs [financial institutions] in the world, in Africa, you need a correspond bank first in order to move money via SWIFT rails. This takes away all that complexity and makes it simpler for money to move quicker yet with the entire infrastructure that guards money movement globally right now.”

ICYMI: Last week, Africa’s largest start-up and payments giant @theflutterwave – valued at $3bn – showcased their $USDC merchant settlement solution built on #Hedera with support from @The_Hashgraph Association’s #Hashgraph Enterprise Program.@BitcoinKE:https://t.co/FsNoYQHCpS

— Hedera (@hedera) October 9, 2023

The Send App Stablecoin Play

Giving an example of PayDay, GB said the company is enabling Nigerian engineers to be paid via stablecoins on Flutterwave.

GB also talked about the Send App consumer app and how the company is building the stablecoin backend infrastructure enabling the money to move in seconds.

STABLECOINS | Leading African Fintech, Flutterwave, Selects TurnKey to Power Verifiable Stablecoin Wallets Across Africa

Speaking on the costs, GB said:

“If you’re doing B2B payments, you can pay as low as 0.5% for example, compared to before through maybe a different rail which could be as high as 1.5%.

So there’s a lot of cost savings in there and yet a lot more efficiency as an entire infrastructure.”

PRESS RELEASE | Flutterwave Collaborates with Polygon as an Infrastructure Partner for Stablecoin Payments Across Africa

When asked about the broader fintech space in Africa, GB highlighted products like PiggyVest and Bamboo for savings and investment which are solving real problems in Africa.

2025 RECAP | Nigerian Fintech, PiggyVest, Reports Highest-Ever Annual Payouts and Surpasses 6 Million Users in 2025

When it comes to VC investments, GB provided some valuable insights for anyone looking at Africa.

“I think being able to understand emerging markets is very key. You have to also have an interest in emerging markets, not just deploying dollars and stepping back. 

Startups need growth partners and investors, not just checks. Check are key, but beyond the checks, how do you help us to growth from Series A to Series B? How do we grow go-to market? How do you elp us to scale compliance? 

All of tht skill set helps a lot to actually help to grow to the next level as well.”

 

Speaking on the next 5 years, GB said:

“I think in the next five years, stablecoins will become so entrenched in the entire global financial infrastructure. We will see stablecoins that are even backed by non-US currencies over time.

For example, if you want to tokenize the Naira, it doesn’t have to leave Nigeria for that to happen. It can happen in Nigeria for Nigeria.

So, we will start seeing a lot of local stablecoins plays happening across each country and you will see a lot of companies issues their own stablecoins because now its democratized and bring the entire infra on-chain helping them become more efficient, save more money and also create more efficient treasury plays which were not possible before.

So in five years there will be a lot more companies having their own stablecoins and they can use that to meet at some point for acceptance.”

INTRODUCING | Africa’s First Regulated Stablecoin, the Nigerian Naira-Pegged Stablecoin, $cNGN, Goes Live on Local Nigerian Exchanges

When it comes to consumer usage, GB opined:

“I think the apps we use will still remain the apps we use. The underlying hood will change. So you like Venmo, you like PayPal, you like Cash App, that’s fine, but behind the scene you’ll start seeing money moving via stable rails.

The apps are not gonna change in my opinion. They might evolve yes, but the risks are going to keep changing, but the behavior o the consumer will not change.”

FINTECH AFRICA | Acquisition of Mono is a ‘Critical’ Part of the Stablecoin Strategy, Says Flutterwave

 

 

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Ghanaian crypto startup, Bitsika, has so-called ‘no-KYC’ crypto virtual cards – marketed as easy, anonymous ways for users in Africa to convert crypto into spendable fiat through VISA networks – are now attracting serious scrutiny from compliance experts and regulators.

We Processed about $40 Million and Registered Over 95K Users in 2020, Says BitSika CEO

What’s at stake isn’t just a fintech gimmick, it’s a potential breach of global anti-money-laundering (AML) and counter-terror finance (CTF) standards that could undermine the legitimacy of crypto services across the continent.

At the core of the controversy is how these cards claim to operate without Know-Your-Customer (KYC) identity checks, a foundational requirement under international AML/CTF rules. While Bitsika promotes its cards as a way to bypass traditional identity verification, even in jurisdictions with strict banking requirements, independent reviews highlight that ‘no-KYC’ card models in 2026 rely on legal loopholes and ambiguous issuing arrangements rather than true regulatory compliance.

This matters because financial regulators and global standard-setters, especially the Financial Action Task Force (FATF), make clear that virtual asset service providers (VASPs) and payment issuers must implement robust customer identification and verification to prevent misuse of digital financial tools for illicit finance. FATF’s Travel Rule and associated recommendations require crypto platforms and financial services to collect, verify, and share accurate user information whenever assets move across borders, just as traditional banks do.

REGULATION | FATF Crypto Compliance Checklist Raises Red Flags – Which African Countries Are Next?

Why Bitsika’s Model is Problematic

Claims of ‘no KYC’ raise red flags for AML/CTF compliance: In regulated markets, card issuance tied to traditional payment networks like Visa or Mastercard must meet strict identity verification standards — something no-KYC models can’t legally satisfy at scale.

Compliance loopholes are unstable: Industry compliance professionals have publicly warned that services promoting anonymity in financial products often leverage gaps or fraud-prone pathways, and can be shut down abruptly when legal scrutiny catches up.

FATF has specifically identified that many jurisdictions, including across Africa, struggle with implementing crypto compliance, leaving gaps that bad actors can exploit if products aren’t held to global AML/CTF standards.

The broader implication is significant: if crypto products marketed to Africans evade KYC and other safeguards, they risk being labelled as illegal financial instruments in key markets. Regulators may treat these services as unlicensed or non-compliant financial actors, exposing users and providers to enforcement actions. This dynamic could damage trust in the crypto industry already under pressure from global regulators pushing for higher transparency and accountability.

For African crypto markets, which regulators and investors are watching closely as part of efforts to enhance financial infrastructure and retreat from global grey-list status, the emergence of non-compliant services could be a setback. It undermines efforts to legitimise digital assets as safe, transparent parts of the financial system rather than shadows acting outside regulatory norms.

REGULATION | Kenyan CEOs Now Risk 7-Year Jail Term, Employment Ban, Under Tougher Anti-Terrorism & AML Laws – What This Means for Crypto

 

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Over the past week, one of the most unheralded yet impactful moves in crypto unfolded within Binance, the largest crypto exchange globally.

Binance’s Secure Asset Fund for Users (SAFU), the exchange’s insurance-style reserve for covering extreme losses, hacks, or system failures, has been aggressively converting its holdings from stablecoins into Bitcoin (BTC).

 

Binance announced a 30-day strategic shift of its SAFU fund, originally dominated by stablecoins, into Bitcoin. The goal is to convert $1 billion of SAFU reserves into BTC to strengthen long-term protection and reduce counterparty risk tied to stablecoins.

This isn’t Binance ‘buying the dip,‘ but rather systematic reserve rebalancing designed to allocate roughly ~$33 million daily into BTC to avoid market shocks.

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Thanks to transparent on-chain disclosures and multiple independent news reports, here’s how the conversion has played out:

1,315 BTC (~$100 million) – first tranche completed early in February as part of the rollout.

Another 1,315 BTC (~$100 million) – boosting holdings to ~2,630 BTC.

3,600 BTC (~$233 million) – mid-week addition that brought total to about 6,230 BTC.

4,225 BTC (~$300 million) – latest transfer reported on February 9, pushing SAFU’s BTC stash past 10,000 BTC for the first time.

That puts the SAFU Bitcoin reserve at ~10,455 BTC, with a current notional value approaching three-quarters of a billion dollars and roughly 73% of Binance’s original $1 billion conversion target completed.

While large BTC acquisitions don’t dictate price direction on their own, they do reflect a broader shift: major exchanges treating Bitcoin not just as a tradable asset but as a cornerstone of financial resilience. If other platforms follow suit, institutional demand narratives could strengthen.

At the very least, Binance’s SAFU conversion is now one of the largest centralized Bitcoin accumulations outside of typical treasury strategies, and a story worth watching as the 30-day conversion window plays out.

MILESTONE | The World’s Largest Public Bitcoin Holder Now Owns Over 700,000 Bitcoins

 

 

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According to Bloomberg, Chinese financial authorities have advised domestic banks to limit new purchases of U.S government bonds and reduce positions where exposure is high citing concerns about market volatility and concentration risk.

This guidance has sparked speculation that China may be cutting back on U.S. government bonds, but that doesn’t amount to an aggressive sell-off or a new strategic weapon. Analysts on Bloomberg note this is not a sudden ‘sell America’ trade but part of a longer-term shift.

DOLLARISATION | Leading Global Bank Warns of Potential Dollar Crisis Amid Trade Tensions

Data Reveals China’s Share is Falling, But Slowly

Official U.S. Treasury data and multiple financial sources show that:

China’s holdings of U.S. Treasuries have been on a multi-year downward trend, declining from over $1.3 trillion a decade ago to levels below $700–800 billion in recent reporting.

As a result, China is no longer the largest foreign holder of U.S. government debt. Japan has overtaken Beijing, with Tokyo’s holdings near or above $1 trillion, while China lags behind Japan and even the United Kingdom in some datasets.

Despite the decline, China still ranks among the top foreign holders, just no longer first. Foreign holdings overall remain substantial, with global investors and central banks holding a record amount of U.S. Treasuries even as China pulls back in relative terms.

EXPERT ANALYSIS | ‘In Emerging Markets, High Penetration of USD-Linked Stablecoins in Particular, Weaken Monetary Transmission,’ Warns Moody’s Ratings

Why China Has Been Reducing its Position

The reasons are less about geopolitics alone and more about risk management and reserve diversification:

China has deliberately reduced its exposure to U.S. debt to mitigate concentration risk and to promote broader diversification of its foreign reserves.

Beijing has been accumulating other assets such as gold and overseas equities, part of a longer-term strategy to rebalance reserve portfolios and lessen reliance on U.S. dollar assets.

The reduction has happened gradually over many quarters and years – it’s a continuation of a trend that started as far back as the early 2010s.

 

Despite headlines suggesting a “major dump” of U.S. Treasuries:

Markets have not seen dramatic or destabilizing sell-offs attributable to China. Moves in yields and the dollar reflect broader global factors – including inflation expectations, U.S. fiscal policy, and global demand from a wide array of investors.

Commentators on Bloomberg have emphasized that periodic trimming of holdings is normal and part of reserve management rather than an outright strategy to weaponize U.S. debt.

REGULATION | ‘Forced De-Dollarization Measures Are Likely to Prove In-Effective,’ IMF Official Says to Zambia

China isn’t suddenly dumping U.S. Treasuries in a tit-for-tat geopolitical move. Instead:

Beijing is reducing its exposure gradually, part of a longer-term rebalancing of reserves.

Japan has surpassed China as the largest foreign holder of U.S. government debt.

Global foreign holdings of Treasuries remain elevated, even as China’s share shrinks.

REGULATION | ‘We Are on a De-Dollarisation Journey,’ Says Zimbabwe Reserve Bank Governor as Gold Reserves Rise By 30% in 100 Days

 

 

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A new report from Wall Street investment bank Jefferies says Tether’s physical gold holdings have climbed to at least roughly 148 tonnes, giving the stablecoin issuer a bullion stash valued at more than $23 billion, a total that places it among the top 30 gold holders worldwide.

According to Jefferies’ analysis, Tether’s quarterly gold purchases have outpaced most sovereign buyers such as:

Australia

United Arab Emirates (UAE)

Qatar

South Korea

Greece

with only a few central banks, including:

Poland and

Brazil

reporting higher net additions.

The gold is held as part of reserves to back both Tether’s flagship dollar-pegged token USDT and its gold-linked token XAU₮. Interestingly, the report notes that, because Tether is a private company, the estimated 148 tonnes likely represents a floor rather than a precise total.

The move towards diversifying its stablecoin reserves comes after the stablecoins crossed $300 billion in market cap (58% growth YoY) for the first time in October 2025 with analysts predicting the market could hit $500 billion and possibly $1 trillion by the end of the decade.

MILESTONE | Stablecoins Cross $300 Billion in Market Cap for the First Time

Stablecoin companies, with Tether leading in the pack, are already among the top 20 holders of U.S debt and the only non-sovereign debt holders in the list.

A look at the XAU₮ supply reveals that there were 712,000 tokens worth ~$3.2 billion by end of January 2026. This is an increase of 6 tonnes of token back. Interestingly, Tether CEO, Paolo Ardoino, recently revealed that the gold-back is being driven by a strong retail demand mainly from emerging markets.

The accumulation comes at a time when gold has seen a record-breaking high crossing $5,000 per ounce for the first time in history – a 50% rise since September 2025.

MILESTONE | Gold Hits Historic High and Nearly Adds Bitcoin’s Entire Market Cap in a Single Day

Jefferies also pointed out that by the end of 2025, Tether’s audited USDT reserves included approximately $17 billion worth of gold, underscoring how significant physical gold has become in the company’s asset mix.

2025 RECAP | Tether (USD₮) Reports Over 500 Million Users and Over $10 Billion in Profit for 2025

 

 

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The Governor of the South African Reserve Bank, Lesetja Kganyago, has warned that the rising popularity of stablecoins poses a significant risk, saying there is a danger these cryptocurrency assets could ‘break apart.’ 

Addressing the 2026 Warwick Economics Summit, Kganyago stressed the responsibility of central banks to ‘protect the oneness of money and the affordability of money to the public.’ He said stablecoins, which are digital tokens typically backed by assets that aim to maintain a fixed value, have gained traction around the world, including in South Africa, as users seek alternatives to traditional currencies.

 

“The truth of the matter is that these things could break apart,” Kganyago said, highlighting concerns about the structural soundness of stablecoins and the potential implications for financial systems if they fail or fragment.

 

His remarks underline the broader unease among policymakers in emerging markets about the rapid expansion of digital assets that operate outside existing regulatory frameworks, even as adoption grows among investors and everyday users.

Kganyago’s remarks come against a broader backdrop of caution from the South African Reserve Bank (SARB), which in late 2025 flagged both crypto assets and stablecoins as emerging financial stability risks in its annual Financial Stability Report.

REGULATION | South African Central Bank Warns ‘Crypto & Stablecoins Pose Financial Stability Risk’

The 2025 report noted a sharp increase in adoption: combined users on the country’s three largest crypto exchanges climbed to nearly 7.8 million by mid-2025, with trading volumes in USD-pegged stablecoins surging as their lower volatility made them the preferred trading pair on local platforms.

SARB warned that the borderless nature of stablecoins and other digital assets could be used to sidestep South Africa’s exchange control regulations, potentially facilitating unmonitored capital flows and complicating oversight.

REGULATION | South African Reserve Bank Moves Quickly to Block Crypto Loophole, Files Appeal Against High Court Ruling on Exchange Controls

Unlike regulated financial instruments, many stablecoins currently operate without a comprehensive legal framework leaving regulators with limited data on their adoption and systemic interlinkages and creating conditions where risks could build up undetected and spread into the broader financial system.

REGULATION | South Africa Reserve Bank to Publish Regulatory Framework in 2025 to Cover Business Activities for CASPs, Says Finance Minister

The central bank highlighted that without stronger regulatory guardrails, particularly for global stablecoins and the custodial entities that issue them, the country’s financial system could be more vulnerable to shocks.

This stance contrasts with other regulatory initiatives in South Africa, such as the Financial Sector Conduct Authority’s classification of certain crypto assets as financial products and the licensing of exchanges, but SARB’s warnings underscore a persistent unease about digital assets’ capacity to compromise monetary control and financial stability.

2025 RECAP | South Africa Had Approved 300 Crypto Firms Out of 512 Applications as of December 2025

 

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The Nigeria financial technology industry expanded by an impressive 70 per cent in 2025, even as global economic conditions remained tough, the Central Bank of Nigeria (CBN) has reported.

The growth figures are part of the CBN’s latest report titled “Shaping the Future of Fintech in Nigeria: Innovation, Inclusion, and Integrity”, which highlights Nigeria’s rising position as a major digital finance hub in Africa.

According to the banking regulator, the surge in fintech activity reflects stronger domestic economic stability and a renewed focus on digital transformation, which has helped evolve the sector from a group of emerging startups to one of the continent’s most dynamic innovation ecosystems.

2025 RECAP | Nigerian Fintech, PiggyVest, Reports Highest-Ever Annual Payouts and Surpasses 6 Million Users in 2025

CBN Governor, Olayemi Cardoso, said that despite global headwinds, Nigerian fintech companies continued to attract investment and drive industry change.

He noted:

“With improved stability of our currency and domestic economy, it is clearer than ever that financial innovation can advance inclusion at scale.”

 

However, the report also warned of obstacles that could slow future growth.

These include:

Increased compliance costs related to fraud prevention

Anti-money-laundering requirements and

Regulatory delays that are slowing the rollout of new products.

REGULATION | SEC Nigeria Raises Minimum Capital Requirements, Sets Higher Bar for Crypto, Fintech, and Capital Market Operators

Industry stakeholders also flagged technical challenges that could hamper expansion. About half of those surveyed described the fintech ecosystem’s interoperability as weak, citing fragmented API standards and data protocols. Meanwhile, 37.5 per cent pointed to limitations in digital identity systems and a lack of solid credit histories as barriers to broader financial service delivery.

The report referenced the strain on payments infrastructure during peak periods, such as the busy “Detty December” season, illustrating how spikes in travel, remittances, and wage disbursements put pressure on systems.

To sustain the momentum, the CBN outlined policy measures aimed at balancing innovation with financial stability. These include a proposed shared fraud-intelligence model, regulatory passporting to support cross-border expansion in Africa, and the use of open banking and tiered KYC frameworks to broaden access to financial services.

The central bank said that by strengthening collaboration between regulators and innovators, Nigeria’s fintech sector can continue to be a driver of economic growth and a model for financial inclusion across the continent.

FINTECH AFRICA | PayPal is Back in Nigeria – This Time Through Paga, and Crypto Is the Quiet Catalyst

 

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_________________________________________

Bitcoin has endured one of its sharpest downturns in recent weeks, sliding over 40% in a month to a 2026 low of about $60,000, and is now more than 50% below its October 2025 all-time high near $126,200.

Analysts are debating what triggered this steep sell-off, with a few key theories gaining traction.

 

_______________

Key takeaways:

Leveraged options bets by Hong Kong hedge funds may have sparked the initial sell-off.

Structured finance hedging by large banks could have compounded the decline.

Miner strategy shifts and hash rate stress are also being cited as contributing factors.

 

1.) Hong Kong Hedge Funds’ Leveraged Bets

One of the leading explanations points to hedge funds in Hong Kong that heavily leveraged positions on Bitcoin, particularly through options tied to spot Bitcoin ETFs such as BlackRock’s IBIT. According to market insiders, these funds borrowed cheap Japanese Yen, converted it into other currencies, and deployed it into risky crypto bets.

When Bitcoin’s price stopped rising and borrowing costs on yen climbed, these leveraged positions began to deteriorate. Lenders then demanded additional margin, forcing positions to be unwound and assets, including Bitcoin, to be sold quickly, intensifying downward pressure on prices.

05.02.2026 pic.twitter.com/IC18tSBjGr

— BitKE (@BitcoinKE) February 5, 2026

2.) Structured Products and Bank Hedging – The Morgan Stanley Angle

Former BitMEX CEO, Arthur Hayes, has suggested that U.S. banks, including Morgan Stanley, may have been compelled to sell Bitcoin or related instruments to hedge exposure tied to structured products linked to spot BTC ETFs.

Such products often require dealers to routinely hedge their risk by selling underlying Bitcoin or futures. When key price thresholds are breached, for example near $78,700, the hedging becomes more aggressive, forcing dealers from net liquidity providers into sudden sellers, which can amplify downward moves in BTC’s price.

EXPERT OPINION | Bitcoin, Digital Asset Treasuries and the Road to 2026: Director of Institutional at Gemini on Where Crypto Is Headed

3.) Miner Shifts and Hash Rate Declines

A third theory, though less widely discussed, centers on moves by some Bitcoin miners toward AI data center businesses. This miner ‘pivot’ has reportedly contributed to a drop in the Bitcoin network’s hash rate by as much as 10-40% which some analysts view as a negative signal for miner profitability and confidence.

For instance, several mining firms announced plans to diversify into AI infrastructure, selling portions of their Bitcoin holdings.

At the same time, metrics like the Hash Ribbons indicator have flashed warnings, reflecting miner stress. With production cost estimates rising and miners’ break-even figures approaching current price levels, any further drop below $60,000 could increase selling pressure from this group.

MILESTONE | Gold Hits Historic High and Nearly Adds Bitcoin’s Entire Market Cap in a Single Day

 

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________________________________________________

 

On February 6, 2026, the People’s Bank of China (PBOC) together with seven major Chinese regulatory bodies issued a sweeping regulatory directive tightening controls on cryptocurrency-related activity, specifically targeting Yuan-pegged stablecoins and the tokenization of real-world assets (RWAs).

The notice, jointly released by,

the PBOC,

the China Securities Regulatory Commission (CSRC),

Ministry of Industry and Information Technology, and

other financial agencies

reaffirmed China’s long-standing prohibition on crypto while adding new layers of control over digital financial products that have proliferated in global markets.

The Central Bank of China Officially Bans Banks and Payment Institutions from Accepting Crypto Transactions

What the New Directive Actually Says

At its core, the directive states:

Unapproved issuance of stablecoins pegged to the Chinese Renminbi (RMB) is strictly forbidden, whether issued inside China or by offshore firms targeting Chinese users.

Tokenized real-world assets (RWAs) such as blockchain-represented equities, bonds, or property cannot be issued or traded in China without explicit regulatory approval.

Overseas entities owned or controlled by Chinese firms may not issue virtual currencies or RWA tokens to mainland users, effectively extending China’s regulatory reach beyond its borders.

The six other government ministries joined the PBOC in denouncing all virtual-currency activities as ‘illegal financial activities,‘ echoing previous pronouncements that classify crypto trading and issuance as unlawful within China.

Chinese state media described the move as intended to ‘safeguard economic and financial order’, with regulators citing risks from speculation, capital flight, fraud, money-laundering, and damage to household financial security.

TOKENIZATION | ~10,000 Luno Users Purchase Tokenised U.S. Stocks in First Month

 

Why China Is Doubling Down Now

This latest directive is widely seen as both a continuation and an escalation of China’s multi-year policy pivot away from decentralized cryptocurrencies and private stablecoins toward a state-managed digital ecosystem:

In September 2025, Beijing ordered private stablecoin pilots to pause amid regulatory uncertainty, even as discussions had earlier circulated about legalizing Yuan-pegged tokens.

In January 2026, the PBOC approved interest-bearing wallets for China’s central bank digital currency (CBDC), the e-CNY, signaling a strategic preference for state-issued digital money over privately issued alternatives.

This new ban explicitly brings tokenized RWAs into the prohibited category for the first time, marking China’s most comprehensive crypto crackdown since the 2021 mining ban that drove most global Bitcoin hashrate out of the country.

Analysts and industry observers note that regulators fear stablecoins and tokenized assets could be used to circumvent China’s strict capital controls, undermine monetary sovereignty, and create off-balance-sheet financial risks outside traditional oversight frameworks.

 

The Chinese approach starkly contrasts with regulatory developments in many other major economies:

The United States, through pending stablecoin legislation like the Stablecoin TRUST Act and GENIUS Act, is moving toward a regulated framework that integrates stablecoins into the financial system with consumer protections.

The European Union’s MiCA regulation has established clear rules for stablecoin issuers under EU law, aiming to balance innovation with financial stability.

Hong Kong recently passed a stablecoin regime requiring licensing and reserve standards, positioning itself as a regulated alternative to mainland restrictions.

In this global landscape, China’s policy effectively de-prioritizes private stablecoin and RWA innovation, instead channeling digital asset advancement into the state CBDC (e-CNY) and tightly supervised financial markets.

‘If You Go to Africa, You Don’t See U.S There But China . . . We’re the Last Stronghold of U.S. Dollar Hegemony,’ Says CEO of Tether

Market and Industry Reaction

Crypto markets reacted to reporting of the ban with short-term volatility, particularly affecting assets tied to stablecoin liquidity and tokenized products, though global sentiment remains mixed given China’s already long-standing hostility toward decentralized crypto activities.

Industry participants outside China view the move as a regulatory redrawing of the innovation map, pushing stablecoin and RWA development toward jurisdictions with clearer, more permissive frameworks.

 

China’s latest regulatory notice doesn’t just reaffirm its anti-crypto stance, it formalizes a wider ban on stablecoins and real-world asset tokenization with extraterritorial reach.

The message is clear: any digital financial activity that masquerades as or functions like money outside strict state control is unwelcome, and China’s digital future will be built on its own terms centered on the digital Yuan and tightly regulated financial infrastructure.

BANKING | Standard Bank Becomes First African Bank to Connect Directly to China’s Cross-Border Payment System (CIPS)

 

 

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 Tether, the company behind USDT, the largest stablecoin, has announced a strategic investment in t-0 Network, a USD₮-powered settlement platform for licensed financial institutions, to enable instant, cost-effective cross-border payments.

Positioned as a competitor to the Circle Payments Network, the Tether network uses USDT exclusively as the settlement layer to enable near-instant, low-cost cross-border payments between licensed financial institutions.

t-0 network is a proprietary payments solution that connects financial institutions worldwide, enabling banks and fintechs to coordinate cross-border fiat-to-fiat payments with near-instant settlement and minimal fees by leveraging stablecoins as the core settlement infrastructure. This innovative approach

reduces foreign exchange (FX) exposure,

lowers capital requirements,

creates new revenue opportunities for members worldwide, and

eliminates the complexity of traditional banking.

INTRODUCING | The Circle Payments Network Mainnet Is Now Live!

t-0 network enables international payments to function like local transactions. Each side of a transaction pays or receives funds in their local currencies, while t-0 network’s global ledger records and matches transactions across financial institutions before settling balances, ensuring transparency and accuracy.  The network operates as a trusted, non-custodial infrastructure that enables secure, on-chain movement of funds between licensed partners. It connects licensed institutions through a single API and settles only the net balance at each partner’s chosen currency, delivering a more reliable and transparent model for international payments. 

USD₮ is a widely used digital dollar with deep global liquidity, making it accessible to businesses and individuals worldwide. t-0 network builds on this foundation to deliver regulated, programmable settlement between financial institutions, transforming USD₮’s global liquidity into an institutional-grade network for near instant, compliant cross-border value transfers.

 

“At Tether, we believe financial freedom should be easily accessible to everyone, and we are committed to delivering this through infrastructure that is fast, transparent, and globally scalable. The t-0 network directly addresses the complexity of international payments by combining real-time settlement, cost efficiency, FX transparency, and global reach.

We are excited to support a platform that is transforming cross-border payments into a seamless, trusted experience for institutions worldwide,” said Paolo Ardoino, CEO of Tether.

STABLECOINS | Yellow Card Joins the Circle Payments Network to Expand $USDC Access Across Africa

 

“We built t-0 network to make borderless economic connection a reality,” said James Brownlee, CEO of t-0 network.

“Our goal is to make global payments feel local, whether you’re a fintech in London or a bank in Buenos Aires. With Tether’s support, we’ve developed the infrastructure to remove friction between developed and emerging markets, enabling institutions everywhere to connect, transact, and grow on equal terms.”

 

This initiative underscores Tether’s commitment to supporting innovative financial infrastructure that enables real-world use cases for USD₮ and promotes global financial inclusion.  

 

 

______________

About t-0 Network Network 

t-0 network Network is rebuilding the infrastructure of global payments for the stablecoin era. Designed for banks, fintechs, and payment institutions, t-0 network connects licensed partners through a single API, enabling instant, programmable settlement across borders. Its patented net-settlement mechanism dramatically reduces FX and capital costs while unlocking new volume and revenue opportunities for members.

Supported by Tether, the world’s largest stablecoin issuer, t-0 network is powered by USD₮, the most liquid and widely used digital dollar. By leveraging this liquidity, the t-0 network provides financial institutions with a compliant, stable, and instantly accessible settlement layer.

2025 RECAP | Tether (USD₮) Reports Over 500 Million Users and Over $10 Billion in Profit for 2025

 

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Zimbabwe’s Financial Securities Exchange (FINSEC Zim) has received regulatory approval to operate the country’s first asset tokenisation market, a ground-breaking development for digital finance and capital markets in the region.

The Securities and Exchange Commission of Zimbabwe (SEC Zim) granted the licence under its regulatory sandbox framework, enabling FINSEC to pilot tokenised trading of real-world assets in a controlled, supervised environment.

 

A Milestone for Digital Finance and Market Modernisation

The approval marks a significant shift in Zimbabwe’s financial landscape, introducing a regulated structure for converting ownership interests in physical assets, starting with property, into digital tokens that can be issued, traded, and settled on a blockchain-enabled platform.

Under the sandbox framework, SEC Zim allows innovations to operate with real users while closely monitoring risks and regulatory compliance ahead of broader market rollout. This approach balances innovation with investor protection and risk oversight.

FINSEC Zimbabwe, established in 2016 as a licensed Alternative Trading Platform (ATP) and part of the Escrow Group, operates an automated electronic exchange for securities, including equities and derivatives. The addition of an asset tokenisation market expands its remit into digital asset infrastructure.

REGULATION | Zimbabwe Officials Announce Steps to Evaluate Local Crypto Sector And Introduce a Regulatory Framework

What Asset Tokenisation Means

Asset tokenisation involves digitising economic rights in real-world assets – such as property, livestock, or agribusiness equipment – into digital tokens on a blockchain or distributed ledger. Unlike traditional cryptocurrencies, these tokens are fully backed by identifiable underlying assets and issued within existing legal, custodial, and regulatory frameworks.

This legal and technological fusion is designed to unlock liquidity from traditionally illiquid assets, enable fractional ownership, and broaden access to investment opportunities for retail, institutional, and diaspora investors. Fractionalisation allows investors to buy smaller portions of high-value assets, lowering barriers to entry and democratising investment.

LAUNCH | Zimbabwe Introduces the ZiG Gold-Backed Digital Currency for Use as a ‘Means of Payment for Domestic Transactions’

Platform Design and Regulatory Safeguards

According to FINSEC Zimbabwe, the approved market infrastructure will support the full lifecycle of tokenised assets from origination, due diligence, issuance, and trading, to settlement, custody, and reporting.

The platform will be built on a secure, blockchain-enabled system that provides immutable audit trails, programmable compliance via smart contracts, and real-time regulatory oversight.

Key compliance and investor protection features include:

Escrow-based settlement and segregation of investor funds

Independent asset valuations and insurance coverage where applicable

Full KYC (Know Your Customer), AML (Anti-Money Laundering), and investor suitability controls

Regulated secondary trading to enhance liquidity

These safeguards aim to provide confidence for both issuers and investors operating within the nascent tokenised asset market, ensuring transparency and risk mitigation under regulatory supervision.

OPINION | Africa’s Capital Market Opportunity: Is Tokenization the Secret Key to Unlock Africa’s Economic Potential? – By CEO, Nairobi Securities Exchange (NSE)

The first asset classes approved for tokenisation include income-generating and development property. Each tokenised offering must be backed by verifiable assets, subject to independent valuation, and supported by custodial oversight.

For asset owners such as property developers, farmers, and agribusiness operators, the tokenisation market represents a new capital-raising channel that complements traditional bank financing. For investors, particularly those previously excluded due to high minimum investment thresholds or illiquidity, it opens access to a broader array of asset-backed opportunities.

Market Reception and Future Outlook

Market analysts view FINSEC Zimbabwe’s approval as a major step toward deepening Zimbabwe’s capital markets and integrating digital finance into the broader economy. By channeling savings into productive sectors and lowering entry barriers for investment, the initiative could spur both financial inclusion and economic growth.

FINSEC plans to launch its first pilot tokenised asset offerings once issuer onboarding and investor education initiatives are finalised under SEC Zim’s sandbox regime.

INTRODUCING | Zimbabwe Launches Blockchain-Based Carbon Credit Registry to Boost Transparency and Investor Confidence

 

 

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United States Treasury Secretary, Scott Bessent, told lawmakers that traditional banks and the crypto industry could eventually provide products and services that resemble one another.

Speaking before the Senate Banking Committee, Bessent was asked by Republican Senator, Cynthia Lummis, whether there might come a point when traditional banks and crypto firms are offering the same kinds of financial products. He replied that he believes that could happen over time, adding that the Treasury has been engaging with small and community banks on how they might participate in the digital asset space.

Bessent also pressed for clearer regulations around crypto, saying it’s ‘impossible to proceed’ without defined rules. He urged support for the CLARITY Act, a major crypto market structure bill currently stalled in Congress. Bessent went so far as to suggest that those opposed to the legislation ‘should move to El Salvador.‘

CLARITY ACT | U.S Senate Banking Committee Unveils Draft Crypto Market Structure Bill With Proposed Amendments

On the legislative front, the crypto market structure bill has hit a standstill in the Senate Banking Committee. Lawmakers from both parties have been at odds over provisions, including proposed limits on stablecoin yields that some crypto firms, such as Coinbase, have opposed.

Bessent emphasized that avoiding volatility in deposits, whether at banks or within stablecoin systems, is critical, since deposit stability underpins the ability of banks to lend to households and businesses. He said the Treasury would continue working to ensure that deposit outflows do not destabilize the financial system.

Several crypto companies have offered potential compromises, including expanding the role of community banks in the stablecoin ecosystem, in an effort to help advance the stalled legislation.

REGULATION | The Office of the Comptroller of the Currency (OCC) Clears National Banks to Act as Intermediaries in Crypto Transactions

 

 

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Flutterwave’s latest engineering update offers a rare behind-the-scenes look at how the company is building what it calls Africa’s largest stablecoin infrastructure – a blockchain-based payments backbone designed to place digital value directly into the hands of businesses and consumers across the continent.

At its core, the project is about taking stablecoins – USDT, USDC, and others – beyond speculation and into everyday value movement: low-cost transfers, reliable conversions, and predictable settlement behaviour across fiat and digital rails. The team has already validated live end-to-end flows for inbound and outbound stablecoin transfers and conversions between NGN, USD and major token standards.

The effort is far more than a product sprint – it reflects a deep pivot in Flutterwave’s technology stack toward blockchain-native infrastructure that is predictable, explainable, and intentionally designed to behave exactly as users expect, even in edge cases.

STABLECOINS | Leading African Fintech, Flutterwave, Selects TurnKey to Power Verifiable Stablecoin Wallets Across Africa

Engineering Meets Real-World Value

What distinguishes this initiative from earlier blockchain experiments is the focus on operational realism:

Robust bookkeeping for transparent value movement

Stablecoin flows that behave consistently in diverse network conditions

Support for millions of users from launch day

This isn’t about proving that blockchain works in theory – it’s about deploying it at scale in a payments ecosystem that already moves billions of dollars annually.

ICYMI: Last week, Africa’s largest start-up and payments giant @theflutterwave – valued at $3bn – showcased their $USDC merchant settlement solution built on #Hedera with support from @The_Hashgraph Association’s #Hashgraph Enterprise Program.@BitcoinKE:https://t.co/FsNoYQHCpS

— Hedera (@hedera) October 9, 2023

Why Flutterwave’s Acquisition of Mono Matters

A key element in this puzzle is Flutterwave’s January 2026 acquisition of Nigerian open-banking API provider Mono, a move that has largely flown under the radar outside finance circles.

FINTECH AFRICA | Flutterwave Acquires Nigerian Open Banking Startup, Mono – A Strategic Leap Toward Tokenized Financial Infrastructure

Mono, often dubbed ‘Africa’s Plaid,’ brings capabilities that go far beyond account connectivity:

Bank account linking and identity verification at scale

Direct bank transfer capabilities

Data-driven risk scoring and richer customer profiles

By integrating these functions into its core stack, Flutterwave isn’t just adding open-banking, it’s deepening its infrastructure layer to power customer onboarding, compliance, and fiat-to-stablecoin workflows under one roof. That matters because stablecoin rails depend on seamless interaction with traditional banking systems. Without reliable bank connectivity and risk controls, tokenised value can’t flow safely into and out of fiat systems.

Put simply: Mono’s capabilities help bridge the world of regulated financial data with blockchain-native value settlement. That’s essential when you’re talking about holding and moving customer funds at scale.

 

From Partnerships to Product Activation

This engineering push also complements Flutterwave’s ongoing blockchain strategy. In late 2025, the company announced a multi-year partnership with Polygon Labs to make Polygon’s layer-2 blockchain the default network for stablecoin payment rails – supporting low-cost, near-instant settlements across more than 30 African markets.

PRESS RELEASE | Flutterwave Collaborates with Polygon as an Infrastructure Partner for Stablecoin Payments Across Africa

Together, these moves signal that Flutterwave isn’t experimenting with crypto on the side – it is architecting a hybrid payments stack where:

Open banking ensures trusted bank connectivity

Blockchain rails enable instant, low-fee settlement

Stablecoins serve as the bridge between fiat and tokenised value

 

If Flutterwave delivers on this engineering vision:

Businesses will be able to settle cross-border transactions faster and more affordably

Consumers could enjoy more predictable and transparent payment flows

Developers and partners will have a data-rich, blockchain-enabled stack to build on

It’s a bold bet moves beyond payments gateways and into financial infrastructure and it looks like Flutterwave is betting on this to work.

FINTECH AFRICA | ‘Stablecoin Adoption Has the Potential to 10x the Volumes We’re Currently Doing,’ Says CEO, Flutterwave

 

 

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The Organisation for Economic Co-operation and Development (OECD) Global Forum on VAT remains a key platform for countries and stakeholders from around the world to engage on value-added tax (VAT) issues.

The Sixth Meeting of the Forum, held in Paris, convened governments, regional bodies, and international organisations to share experiences and further dialogue on shifting VAT policy and administrative challenges.

ATAF was actively involved in the meeting, presenting African technical insights on two complex and emerging areas of VAT policy to ensure that the region’s realities and administrative contexts are reflected in global discussions.

Mr Emeka Nwankwo, Head of Member Services at ATAF, delivered a presentation on the VAT treatment of crypto assets in Africa. He noted that crypto assets continue to be a frontier issue for tax administrations globally given their rapid evolution and the ongoing state of study. From an African standpoint, he underlined the need to move beyond conceptual theory and towards practical, implementable approaches that take into account administrative capacity and compliance realities.

REGULATION | Crypto Asset Reporting Framework (CARF) Tax Rules Go Live From January 2026 – Uganda and South Africa Among Implementing Nations

Drawing on ATAF’s work with its members, Mr Nwankwo highlighted key considerations such as the importance of:

Set a clear VAT model for token exchange (e.g., exempt vs taxable) aligned to neutrality and administrative capacity

Publish classification guidance covering token dealing, intermediation fees, custody/wallet services, mining, and crypto used as consideration

Clarify valuation methods and evidence requirements to strengthen compliance and auditability

Prioritise compliance on taxable services and fees, and leverage VASP/AML data for risk analytics

Coordinate regionally to reduce arbitrage and improve consistency in terminology and audit approaches

He also emphasized the benefits of regional coordination to reduce arbitrage risks and promote consistency in terminology, audit strategies, and enforcement.

REGULATION | Nigeria Starts Implementing CARF Requirements by Tying Crypto Transactions to Tax and National IDs

In another session, Ms Itumeleng Kgosietsile, Chairperson of ATAF’s Indirect Tax Technical Committee and Acting Director for Technical Services at the Botswana Unified Revenue Service, spoke on the VAT treatment of internationally traded services. Drawing on African country experiences, she explained that successful VAT regimes for cross-border services supplied by non-resident providers are most effective when introduced through a phased, consultative approach.

REGULATION | The Kenya Revenue Authority Nets ~$8.5 Million from Digital Tax in 21 Months – Includes Crypto Taxation

Ms Kgosietsile stressed the importance of structured stakeholder engagement, clear legislative and administrative design, sufficient lead time for readiness and compliance, and the provision of practical guidance that supports both businesses and tax authorities. These elements, she noted, are essential to achieving revenue goals while avoiding undue compliance burdens or uncertainty.

TAXATION | South Africa Revenue Service (SARS) Looking to Double Staff to Enforce Crypto Asset Transaction Disclosures

She also pointed to ATAF’s ongoing collaborative work with the OECD and the World Bank Group on a regional toolkit to help African jurisdictions design and implement compliance regimes for non-resident suppliers that align with regional needs and administrative capacity.

ATAF’s engagement at the Sixth Meeting of the OECD Global Forum on VAT highlights its role as a conduit between global tax policy processes and country-level implementation across Africa. By bringing African perspectives to international fora and translating global developments into actionable guidance, ATAF continues to support its members in navigating the intersections of VAT policy, compliance risk management, digitalisation, and virtual assets.

WATCH | ‘There Are Crypto Exchanges Already Paying Taxes’ – A Chat with the Digital Economy Tax Office, Kenya Revenue Authority (KRA)

 

 

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The Republic of South Africa has officially acceded to the Establishment Agreement of the African Export-Import Bank (Afreximbank), Africa’s leading Multilateral Financial Institution, marking the formal entry of one of Africa’s largest economies into the Bank’s membership, heralding deeper financial sovereignty.

The accession follows the South African Parliament’s historic approval of the accession in 2025, cementing a strategic partnership between Africa’s leading multilateral Bank and the continent’s industrial powerhouse. South Africa becomes the 54th state to accede to the Bank’s Establishment Agreement, which constitutes a historic milestone as the two partners seek to unlock trade opportunities within a global financial architecture that is rapidly fragmenting due to protectionist policies and shifting trade blocks.

To operationalise this partnership, Afreximbank will launch major financial interventions in the Country. This includes a new $8 billion Country Programme designed to deepen the South African economy. These programmes are tailored to expand the Bank’s developmental impact; enhance industrial development and regional supply chains and significantly boost intra-African trade and investment flows. This support is strategically aligned with South Africa’s economic ambitions.

As the continent’s highest regional contributor to intra-African trade, accounting for $42.1 billion (19.1%) of the continent’s total trade in 2024, South Africa is uniquely positioned to leverage Afreximbank’s trade infrastructure, expertise and pan African reach to extend its export relationships across the continent.

Dr George Elombi, President and Chairman of the Board of Directors of Afreximbank hailed South Africa’s membership as a ‘decisive step’ noting:

“This affirmation of the membership of South Africa in Afreximbank marks a decisive step towards uniting around the continent’s economic interests, the interests of our mother continent. South Africa’s membership of the Bank, while providing Afreximbank a full continental coverage, brings the country into the heart of Afreximbank’s vision and its aspirations to promote the change so much desired in the structure of Africa’s trade.

“I am therefore pleased that together with the South African Department of Trade, Industry and Competition (DTIC), under the leadership of Hon. Minister Parks Tau, we have put together what we consider an important package of US$8 billion for South Africa. The country programme is aligned with South Africa’s national development plan 2030 and national industrial and trade priorities, and targets key strategic areas.”

LIST | AfreximBank Announces 8 Innovative Startups for its Inaugural Accelerator Program Cohort

Dr Elombi added that Afreximbank’s current pipeline of projects in South Africa, at different stages of review, exceeds $6 billion, spanning healthcare, financial services, manufacturing, energy, industrial and mining sectors.

 

Commenting on South Africa’s accession to Afreximbank, President of the Republic of South Africa, H.E. Cyril Ramaphosa said:

“Today we mark a major milestone in our quest to realise what I would call the economic integration of our continent. South Africa’s accession to the African Export-Import Bank affirms our commitment to African industrial development and to deepening trade, investment and development across our continent.

Once finalised, the South African-Afreximbank Country programme will be operationalised with a finance package that will initially support a range of strategic projects across the trade and industrial cluster. And one of those areas that we are going to focus on with immediate effect is to give muscle to our Transformation Fund, to support black businesses who, by the way, were held back by the apartheid system from being active participants in the economy of our country.”

President Ramaphosa added,

“For more than 30 years, Afreximbank has demonstrated its own ability, its resilience, its innovative capability but it has more than that demonstrated that it has impact. This partnership will strengthen in more ways than one South Africa’s ability to support South African exporters, industrial projects and regional value chains while advancing our continent’s progress.”

 

Following the announcement, both South Africa and Afreximbank have resolved to jointly pursue trade and economic development programmes, key among them the South Africa-Africa Trade and Investment Promotion Programme (SATIPP), the Afreximbank Guarantee Programme, the financing of Industrial Parks and Special Economic Zones – not to mention export trading company financing – Project and Asset Based Finance, conventional trade finance, Afreximbank Project Preparation, and financing devised to support the creative and cultural industries, as well as a broad range of advisory services.

AfreximBank Calls Off Credit Rating Relationship With Fitch Ratings, Citing Fundamental Differences in Assessment Approach

 

 

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Spot cryptocurrency trading activity on major exchanges has fallen sharply, dropping from roughly $2 trillion in October 2025 to about $1 trillion by the end of January 2026, signaling a significant slowdown as liquidity dries up and investor engagement weakens.

Bitcoin (BTC) has also seen a notable decline, trading around 37.5% below its October 2025 peak, a drop that has been accompanied by reduced market participation and a contraction in overall volume.

2.2.2026 pic.twitter.com/tGypZqIDxD

— BitKE (@BitcoinKE) February 2, 2026

CryptoQuant analyst, Darkfost, described the situation bluntly, saying “spot demand is drying up,” and attributing much of the pullback to the October 10 2025 liquidation event that rattled markets. Since then, spot volumes on major exchanges have roughly halved.

MILESTONE | Crypto Markets Record the Largest Single-Day Liquidation Event in History

For example, in October Binance recorded around $200 billion in Bitcoin trading volume, whereas recent figures show this has declined to around $104 billion, underscoring the broader downturn in activity.

“This contraction in volumes has brought the market back to levels among the lowest observed since 2024, suggesting a clear disengagement from investors in the crypto market and, consequently, weaker demand,” analysts commented.

 

Market liquidity pressures are also evident in stablecoin flows, with notable outflows from exchanges (over $4 billion) and an approximate $10 billion decline in stablecoin market capitalisation, further straining trading conditions.

Strong inflows generally indicate a willingness to gain exposure to the market, while outflows instead suggest capital preservation and a reduction in risk.

Justin d’Anethan, Head of Research at Arctic Digital, said the biggest short-term risks for Bitcoin are macro-driven, particularly uncertainty around Federal Reserve policy under Kevin Warsh, whose hawkish stance could mean slower or fewer rate cuts, a stronger dollar, and higher real yields, all of which typically weigh on risk assets like crypto.

 

Despite the current gloom, d’Anethan offered a contrarian view: he doesn’t believe the narrative of Bitcoin as a hedge against inflation and currency debasement is over, and noted that renewed ETF inflows, clearer pro-crypto regulation, or softer economic data prompting easier policy could ignite a meaningful rally.

“It might be a bitter medicine, but the recent move feels ultimately necessary and healthy to clear out leverage, tone down speculation, and force investors to reconsider valuations,” he said.

 

Alphractal Founder and CEO, Joao Wedson, added that the market hasn’t yet reached a true price bottom. For that to happen, he noted, short-term holders (STH) must be underwater, which is currently the case, but long-term holders (LTH) must also begin to carry losses, a condition not yet met.

Wedson explained that bear markets typically end only after the realised price of STH falls below that of LTH, and that a break below the key support level near $74,000 could push Bitcoin into a proper bear market.

MARKET ANALYSIS | ‘There is No Retail Interest in Crypto Right Now,’ Say Analysts

 

 

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African Export-Import Bank (AfreximBank) has announced the selection of eight finalists for the inaugural cohort of its Afreximbank Accelerator Program. The three-month programme, set to begin in March 2026, is aimed at supporting high-potential African startups developing solutions to strengthen intra-African trade.

The finalists emerged from a highly competitive pool of more than 1,600 applications, reflecting the depth and diversity of entrepreneurial talent across the continent. The selection process involved in-depth business reviews, interviews, and pitch presentations, evaluated by Afreximbank trade experts alongside external specialists from the venture capital and innovation ecosystem.

Here is the list of startups:

FinCart

OnePort 365

Timon

Zowasel

Gebeya

Fluna

Capsa

Daba Finance

The chosen startups align closely with Afreximbank’s mandate to deliver tangible progress in intra-African and Global Africa trade. Spanning sectors such as agriculture, e-commerce, market access, financial technology, supply chain solutions, and manufacturing, the finalists are positioned to tackle key trade bottlenecks affecting both continental and diaspora markets, while supporting Africa’s industrialisation ambitions.

AfCFTA | The Intra-African Trade Fair 2025 (IATF2025) Kicks Off in Algeria as Leaders Call for Acceleration in Intra-African Trade

Applications were received from across Africa, the diaspora, and CARICOM, underscoring the programme’s wide geographic reach and Afreximbank’s commitment to continental integration under the African Continental Free Trade Area (AfCFTA). By focusing on startups from Seed to Series A stages and applying a structured three-stage evaluation process that blends expert judgment, practical business analysis, and strategic innovation criteria, the accelerator seeks to scale high-impact ventures while nurturing a sustainable, trade-driven development ecosystem.

Finalists in the Afreximbank Accelerator Program will benefit from a comprehensive support package, including:

Equity investment: Subject to selection criteria, up to US$250,000 in equity financing through Afreximbank’s impact investment subsidiary, the Fund for Export Development in Africa (FEDA), to support rapid scaling and operational expansion.

Mentorship: Guidance from experienced professionals and industry leaders, including investors, trade specialists, and thought leaders dedicated to advancing Africa’s economic integration under the AfCFTA.

Market access: Entry into Afreximbank’s pan-African trade ecosystem, encompassing trade facilitation initiatives, regulatory support pathways, and access to the Bank’s extensive network of public- and private-sector partners and multilateral institutions.

Throughout the programme, participants will take part in virtual learning sessions, practical workshops, and in-person engagements hosted in regional hubs such as Abuja and Nairobi, as well as at Afreximbank’s headquarters in Cairo, Egypt. The programme will conclude with a flagship Demo Day, where startups will present their solutions to a global audience of investors, policymakers, and industry stakeholders.

 

Mr. Haytham Elmaayergi, Executive Vice President, Global Trade Bank at Afreximbank commented:

“The Afreximbank Accelerator Programme reflects our belief in the power of innovation to transform intra-African trade and also underscores the important role that Global Africa’s innovation plays in realising the promise of the AfCFTA.

This inaugural cohort represents the future of African enterprise, and we are proud to invest in them from vision to scale to nurture solutions needed to unlock trade across Africa, the diaspora, and the Caribbean.”

 

The Afreximbank Accelerator Program reinforces the Bank’s commitment to promoting homegrown, scalable solutions that address critical trade challenges and help realise Africa’s economic potential under the AfCFTA framework.

AfreximBank Calls Off Credit Rating Relationship With Fitch Ratings, Citing Fundamental Differences in Assessment Approach

 

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Zaru Network has officially launched ZAR Universal (ZARU), a new institutional-grade stablecoin pegged 1:1 to the South African Rand (ZAR) in partnership with Luno, a leading South African crypto exchange.

Designed to modernise payments and financial infrastructure, ZARU enables both retail and institutional participants to transact at internet speed while strengthening the local financial system.

Traditionally, payments, cross-border trade, and remittances using the Rand have been constrained by limited banking hours and high fees. By operating on blockchain technology, ZARU offers a trusted, Rand-backed digital currency capable of instant, 24/7 settlement, connecting South African markets directly with the global digital economy.

Every ZARU issued is fully backed by high-quality, liquid Rand-denominated assets, including cash, bank deposits (Standard Bank South Africa), and South African government bonds, independently audited each month by Moore Johannesburg for transparency and stability. These assets remain within the South African financial system to help drive global demand for Rand-denominated holdings.

Introducing $ZARU

The South African Rand just went global.

Today marks the official launch of ZAR Universal $ZARU – a new institutional-grade, Rand-backed stablecoin, built to bring faster, cheaper and always-on payments to the internet economy.

What makes $ZARU… https://t.co/RAjRe8ChCW

— EasyEquities (@EasyEquities) February 3, 2026

The underlying assets are managed by Sanlam Specialised Asset Management (Pty) Ltd under a formal asset liability management agreement.

“We are excited to provide asset liability management services through Sanlam Specialised Asset Management given its potential to significantly contribute to financial inclusion,” said Jacques Le Roux, CEO of Sanlam Financial Markets.

“We’re connecting traditional financial markets to the world of blockchain to enable cheaper, faster payments.” 

 

The initiative is a collaborative effort between some of South Africa’s most respected financial institutions,

Luno

Sanlam

EasyEquities, and

Lesaka

combining established financial infrastructure with blockchain innovation to unlock real-world utility and accelerate adoption of a Rand-backed digital asset.

 

“We are delighted to collaborate with trusted institutions to launch a Rand-backed stablecoin with meaningful real-world applications,” said James Lanigan, CEO of Luno.

“ZARU is a crucial milestone for South Africa’s digital economy. It’s designed to make everyday payments and money transfers faster and cheaper, while fully supported by secure reserves that help strengthen the local financial system.” 

LIST | South African Crypto Exchange, Luno, Crowned 2025 ‘Crypto Exchange of the Year’ by MyBroadband

“Our mission has always been to make investing easy and accessible,” added Charles Savage, CEO of EasyEquities.

“We’re providing South Africans with a fast, trusted, and low-cost way to seamlessly participate in the future of finance while keeping the Rand at the center.”

 

“We are delighted to support the evolution of South Africa’s payments infrastructure through this partnership,” said Ali Mazanderani, Executive Chairman of Lesaka.

“We believe ZARU is exceptionally well positioned to accelerate the speed and reduce the cost of Rand payments, benefitting consumers, businesses and society as a whole.”

 

From today, ZARU is available exclusively to qualified institutional investors via the trading desks of Luno and EasyEquities. The platforms plan a phased rollout to broaden access to retail users in the near future.

First Rand Stablecoin, ZARP, Goes Live on the OVEX Exchange in South Africa

 

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