Stablecoin Settlement for Faster Remittance

In a move to improve cross-border payment efficiency, London-based remittance app LemFi has partnered with stablecoin infrastructure company BVNK. This collaboration will enable near-instant settlement of funds using stablecoins, reducing the time and cost associated with traditional methods.

The Challenge with Current Systems

When you send money from Europe or North America to Africa, it typically passes through multiple correspondent banks before reaching its destination. These intermediary steps add delays, fees, and complexity to the process.

The World Bank reports that remittances to Sub-Saharan Africa cost an average of 8.78% in 2025—significantly higher than the UN target of 3%. Every additional institution takes a cut, meaning less money reaches families who need it most.

How This Partnership Works

With LemFi and BVNK’s solution, funds are converted to stablecoins for settlement before being disbursed in local currency. Customers continue using their familiar payment methods—sending pounds or dollars that recipients receive as naira, shillings, or cedis.

This approach bypasses the traditional correspondent banking network, allowing transactions to clear much faster and at lower costs. While customers never handle crypto directly, it operates behind the scenes to optimize the settlement process.

Strategic Expansion for LemFi

This partnership is part of a broader strategy by LemFi to expand its services beyond basic money transfers. The company has previously acquired:

  • Pillar: A UK-based credit startup helping immigrants build credit histories
  • Tether investment: Supporting stablecoin integration
  • Wealth8: An investment platform for wealth management

These acquisitions suggest LemFi is building a comprehensive financial services ecosystem for the African diaspora, starting with remittances and expanding into credit, investing, and more.

Other Notable Developments in African Fintech:

  • Nedbank’s acquisition of NCBA Group received overwhelming shareholder approval, creating one of East Africa’s largest lenders
  • Fincra is issuing dedicated GHS virtual accounts to simplify payment collection for businesses in Ghana