OTC Crypto Trading: Africa’s Hidden Backbone for Digital Finance and Cross-Border Payments
Over-the-counter (OTC) cryptocurrency trading is quietly emerging as the unseen engine of Africa’s digital financial ecosystem, according to a new report by Quidax, one of the continent’s leading digital asset exchanges. While crypto has often been associated with retail speculation, the report, titled “Africa’s Quiet Crypto Revolution”, shows that OTC trading now drives the majority of crypto settlements across African markets.
Once dominated by institutional investors, large-scale OTC trades are increasingly used by businesses to move funds quickly and securely. These private transactions, often conducted directly between companies, are enabling a new wave of cross-border liquidity and digital payments, providing an alternative to slow and costly traditional banking channels. “Our OTC desk isn’t just facilitating crypto trades; it’s powering real-world business settlements across Africa,” the report notes.
Unlike conventional crypto exchanges, where prices fluctuate with every transaction, OTC trading allows for large volumes to move discreetly, offering predictability and stability. Fintechs, importers, exporters, and global business partners are turning to this method to ensure faster, cheaper, and more reliable transfers into African markets. Stablecoins like USDT and USDC are particularly popular, helping businesses hedge against currency volatility while bypassing cumbersome banking procedures.
Global OTC crypto volumes surged 106% in 2024, with Africa mirroring this trend. A case in point is European e-commerce company NevaCommerce, which leveraged Quidax’s OTC desk to settle payments to Nigerian partners in minutes instead of days using stablecoins, sidestepping USD wire transfers. Quidax is also integrating APIs for fintechs and enterprises, enabling automatic settlement directly in stablecoins or local currencies, effectively embedding OTC functions into everyday business operations.
Quidax describes OTC trading as “Africa’s invisible financial infrastructure,” a backbone supporting global commerce, fintech operations, and gig economy payments. As African countries advance digital currency frameworks and fintech regulation matures, the report predicts exponential growth in stablecoin-settled business transactions over the next two years, particularly in imports, exports, and digital services, cementing Africa’s OTC market as a vital pillar of the continent’s economic future.
source: Business day