East Africa led global stablecoin foreign exchange cost compression in Q1 2026, with pricing gaps narrowing by as much as 81%, according to the Borderless Benchmark Quarterly Insights Q1 2026.
The report, based on over 1.15 million rate observations across 51 currencies, showed Kenya, Tanzania and Rwanda tightening spreads significantly as competition among liquidity providers intensified.
Brazil reached zero basis points execution cost for stablecoin FX, with multiple providers quoting at interbank parity, while other Latin American currencies remained within 22 bps of traditional FX rates.
Africa presented a mixed picture, with Nigeria’s premium narrowing sharply while South Africa and Ghana saw wider spreads due to limited provider competition and parallel market dynamics.
Frontier markets showed the highest volatility, with Zambia’s kwacha widening 701 basis points in just five weeks, highlighting operational risks for cross-border payments in less liquid corridors.
Globally, stablecoin premiums held between 37 and 51 basis points, with USDC and USDT showing near-identical pricing and zero spread difference throughout the quarter.
Borderless said it plans to expand its provider network across APAC, the Middle East and Europe, with Q2 expected to test whether pricing compression continues and whether volatile frontier markets stabilise.