As stablecoins become increasingly important for cross-border payments, the biggest challenge may no longer be blockchain settlement but liquidity. Tanzanian fintech NALA’s recent $25 million credit facility highlights how payment companies need large amounts of local currency available across different markets to make instant settlements possible.
For years, stablecoin discussions have focused mainly on regulation, reserves, and adoption. But as the technology moves deeper into global payments, another challenge is becoming increasingly important: having enough liquidity in the right market at the right time
NALA provides a clear example. The company recently secured an initial $25 million credit facility, with the option to increase it to $50 million, from private credit firm Liquidity and MUFG-backed Mars Growth Capital.
The funding was not raised because NALA was running out of cash. The company still holds more than half of the $40 million in equity it raised in 2024. Instead, the facility is designed to provide working capital for its growing cross-border payment operations. Stablecoins settle instantly; fiat doesn't. One common misconception is that stablecoins eliminate the need for capital in cross-border payments, which fiat doesn't.
A U.S. business sending money to suppliers in Kenya, Nigeria, or Tanzania may complete the stablecoin transaction within seconds. But the payment provider still needs local currency available in the destination market for the recipient to receive the funds immediately.
Without that liquidity, customers may have to wait while the provider sources the necessary local currency. NALA founder Benjamin Fernandes said the company was growing so quickly that pre-funding certain one-way payment corridors was creating operational pressure despite strong demand.
Liquidity is becoming a competitive advantage. This is why NALA chose debt financing rather than raising additional equity. The credit facility can provide capital to:
Pre-fund payment corridors
1. Handle larger enterprise payment volumes
2. Expand into additional markets
3. Process payments without delaying settlements
The model allows NALA to recycle borrowed capital as payments move through its network, similar to traditional correspondent banking, but with stablecoins serving as the settlement layer.
The invisible infrastructure behind stablecoins for most users, the innovation appears to end when USDC or USDT moves across a blockchain. The more complicated part begins afterward. Payment providers still need to convert stablecoins into local currencies, maintain banking relationships, manage foreign exchange, meet compliance requirements, and ensure sufficient liquidity across multiple markets.
NALA has therefore been building licensed on- and off-ramp infrastructure while partnering with companies such as Noah and MoneyGram to connect stablecoin settlement with local banking and mobile money systems.
As stablecoin adoption grows, the companies that succeed may not simply be those issuing tokens or building wallets. The competitive advantage could increasingly belong to companies capable of financing and managing liquidity across multiple payment corridors. The model is similar to how Visa and Mastercard built their payment networks. , the challenge was not simply moving payment information but creating infrastructure that ensured funds could be available whenever transactions occurred.
Stablecoins may make the movement of value faster, but they do not eliminate the need for capital. As cross-border stablecoin payments scale across Africa, liquidity could become one of the most valuable pieces of infrastructure in the entire ecosystem. The next generation of payment companies may compete less on blockchain technology and more on their ability to efficiently finance, manage, and deploy liquidity across markets in real time.
