Anzens and Credit Bank Consider Stablecoin Banking in East Africa

Anzens, a provider of a USDA stablecoin backed by the US dollar and enabled by cross-border payments infrastructure, has announced a partnership with Credit Bank PLC. Credit Bank PLC is a commercial bank licensed by the Central Bank of Kenya. The collaboration aims to explore integrating Anzens’ solution into the bank’s services.

The initiative is currently in an exploratory phase and is subject to ongoing engagement with the Central Bank of Kenya. The goal is to evaluate how regulated stablecoin infrastructure can complement existing cross-border payment systems within a licensed banking environment.

Exploring Stablecoin Integration

The partnership seeks to assess the potential of regulated stablecoin infrastructure to modernize international payments by bridging traditional finance with blockchain-based technologies. If approved, it could allow for the distribution, minting, and redemption of a dollar-backed stablecoin through a licensed commercial bank, embedded within existing banking relationships. This would function as payments infrastructure within the banking system, rather than a standalone crypto product.

Potential Benefits for Credit Bank Clients

The partnership would potentially allow Credit Bank account holders, subject to approval, to convert Kenyan shillings to USDA and back, facilitating cross-border payments at a flat 1.5 percent fee. Transactions would be initiated through existing Credit Bank accounts, with automatic conversion to local currency at the destination. Clients would also have the option to convert back to fiat currency at any time. Credit Bank would act as custodian of funds in both Kenyan shillings and US dollars, providing a compliant bridge between conventional banking and stablecoin settlement.

Addressing Cross-Border Payment Challenges in Kenya

Kenya’s cross-border payment volumes are increasing, with diaspora remittances reaching a record $5 billion in 2024. However, existing infrastructure, such as SWIFT-based correspondent banking, often involves multiple intermediary banks, leading to higher fees and longer settlement times. The World Bank estimates the global average remittance cost at 6.45%, rising to nearly 8% in Sub-Saharan Africa. Stablecoin transactions in Kenya reached $3.3 billion in the year to June 2024, reflecting a growing demand for alternatives.

Expanding into Tokenized Assets

The integration extends to tokenized real-world assets. Yeshara, which holds regulatory sandbox approval from Kenya’s Capital Markets Authority, is collaborating with Anzens and Credit Bank to enable USDA as a payment option for tokenized real estate and commodity assets. Credit Bank would serve as custodian in this context.

Anzens’ Infrastructure and Compliance

Anzens is the only provider that owns both a regulated stablecoin and a global payments network. USDA is fully backed by dollars and dollar equivalents, including US government treasuries, with institutional custody through BitGo Trust. The payment network spans more than 80 countries and 41 currencies, sourcing liquidity through regulated financial institutions. Anzens is dual-licensed in Lithuania and Dubai, with compliance infrastructure spanning KYC, KYT, and institutional custody.