Credit Bank pilots USDA stablecoin in Kenya

Credit Bank PLC has launched a pilot with payments firm Anzens to test the USDA dollar-backed stablecoin in Kenya. The program would let customers convert Kenyan shillings to USDA and redeem USDA back to local currency. It aims to settle cross-border payments at a flat 1.5% fee, subject to approval from the Central Bank of Kenya.

Under the proposed arrangement, Credit Bank would mint, redeem and distribute USDA directly through its banking services. Transactions would clear in minutes and convert automatically into the destination currency. The bank would hold both Kenyan shillings and U.S. dollars in custody to meet regulatory requirements and to shield customers from blockchain technical details.

If the pilot proceeds as planned and receives regulatory sign-off, Credit Bank could become one of the first licensed commercial banks in an emerging market to offer direct fiat-to-stablecoin conversion through retail and corporate channels. The partners describe the project as an exploratory effort to integrate regulated blockchain infrastructure into commercial banking.

The program targets cross-border costs and slow settlement times. Diaspora remittances to Kenya reached $5 billion in 2024. Average remittance costs are estimated at 6.45% globally and nearly 8% for sub-Saharan Africa. Kenyans processed about $3.3 billion in stablecoin transactions in the year ending June 2024, and stablecoins account for roughly 43% of crypto activity across Africa.

Credit Bank and Anzens plan to test USDA as a payment option for tokenized assets. Yeshara, operating in Kenya’s Capital Markets Authority sandbox, will trial the stablecoin for tokenized real estate and commodities, with additional tests scheduled for 2024.

Anzens describes USDA as fully backed by U.S. dollars and U.S. treasuries, with custody provided by BitGo Trust. The company reports a payments network spanning 80 countries and 41 currencies and says it sources liquidity through regulated institutions. Anzens holds licenses in Lithuania and Dubai and uses know-your-customer and know-your-transaction controls along with institutional custody.

Credit Bank chief executive Betty Korir framed the stablecoin in the pilot as a settlement tool rather than an investment: “Stablecoins are not speculative assets in this context; they are settlement infrastructure.” Anzens CEO Shantnoo Saxsena pointed to cost and speed benefits for businesses trading across regions: “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%.”

The partnership requires continued engagement with the Central Bank of Kenya to ensure compliance with local banking and payments rules. Under the proposed model, Credit Bank would operate fiat custody and conversion services while Anzens would provide stablecoin issuance and the payment network. Results from the pilot will determine whether the approach can be deployed more widely.