The Africa Digital Assets Report 2025, published by Absa Corporate and Investment Banking, is a timely analysis aligning with Africa’s current financial evolution. The benchmark study, the first of it’s kind, dissects the maturation of digital assets from fringe speculation to institutional cornerstone, amid Africa’s burgeoning tech ecosystem.
The report underscores a central thesis: the future of digital assets will be forged on trust. As demand surges across businesses, investors, and consumers, confidence however lags, creating a chasm that trusted institutions must bridge.
Drawing on market-specific data, user behaviour insights, and strategic analyses, the report positions Africa as a global frontrunner in digital finance innovation, yet one hampered by regulatory fog and knowledge voids. For African enterprises and financiers, it offers actionable intelligence: Institutions must leverage trust to unlock the potential $50–100 billion in latent capital flows by 2030, while navigating a landscape where non-bank fintech’s disrupt and incumbents must adapt.
At its core, the report reveals digital assets’ pivot from hype to utility. In 2025, adoption metrics paint a continent-wide surge: transaction volumes in stablecoins and tokenised assets grew 40% year-over-year in key markets like Nigeria, Kenya, and South Africa, per Absa’s proprietary survey. This isn’t mere trading frenzy; it’s institutional embedding, with firms using blockchain for cross-border remittances (reducing costs by 60% in East Africa) and supply-chain tokenisation (enhancing traceability in agriculture).
Yet, the report warns, this momentum risks stalling without systemic trust. A staggering 72% of surveyed executives cite “lack of confidence” as the top barrier, outpacing even infrastructure woes.
Key Takeaway: For SMEs and corporates, digital assets aren’t optional; they’re efficiency multipliers. Finance pros should prioritize custody solutions, as Absa itself launches compliant platforms to safeguard against hacks (which spiked 25% in 2024).
Key Trends: From Speculation to Strategic Imperative
The report identifies four interlocking trends reshaping Africa’s digital asset ecosystem, each backed by granular data from 1,200+ respondents across 10 markets.
- Institutional Utility Over Retail Hype: Digital assets are shedding their “get-rich-quick” skin. In 2025, 55% of African institutions now integrate them for real-world use, up from 28% in 2023, spanning DeFi lending (e.g., Nigeria’s $2B tokenised bond market) and NFT-backed IP rights in creative industries. Stablecoins dominate, comprising 65% of volumes, as they hedge against naira/zar volatility. Trend data: Kenya leads with 45% institutional uptake, driven by M-Pesa’s blockchain pilots, while South Africa’s JSE tokenised securities hit R10B in trades.
- Key Takeaway: Businesses in volatile sectors like mining and agribusiness can pivot to tokenised assets for faster liquidity—Absa estimates 20–30% cost savings on collateral management.
- Trust as the New Currency: Market-specific trust dynamics emerge as a defining trend. In eight of ten surveyed markets (e.g., Nigeria, Egypt, Ghana), banks command 68% trust for digital asset gateways, per the report’s Trust Index. Consumers flock to incumbents for security, with 82% preferring bank-custodied wallets over exchanges. Exception: Kenya, where mobile money (M-Pesa) holds 75% trust, inverting the model and accelerating peer-to-peer crypto flows (up 50% YoY). Visuals in the report—a heatmap of trust scores—highlight this divergence, urging pan-African strategies to localize.
- Key Takeaway: Finance firms must co-create with telcos in East Africa; elsewhere, banks can monetise trust via premium custody fees, projecting $5B revenue by 2027.
- Non-Bank Disruption and Hybrid Models: Fintechs and telcos are outpacing banks in innovation, capturing 40% of new users via seamless apps. Examples include Nigeria’s Bundle (stablecoin remittances) and South Africa’s Luno (retail staking). Yet, the report notes a convergence: 62% of non-banks seek bank partnerships for compliance. Trend: Hybrid ecosystems rise, with tokenized real estate platforms (e.g., Kenya’s 30% YoY growth) blending fiat and crypto. Data point: Africa’s digital asset market cap hit $15B in 2025, but only 25% is institutionalized—ripe for hybrids.
- KeyTakeaway: Corporates should scout non-bank pilots for pilots; investors, target JV funds yielding 15–20% IRRs in compliant hybrids.
- Regulatory Evolution and Global Spillover: Africa’s patchwork regs—South Africa’s FSCA licensing vs. Nigeria’s CBN bans—fuel a 35% intra-African arbitrage trend. The report forecasts harmonization via AfCFTA’s digital protocols, potentially unlocking $20B in cross-border flows. Global ties: U.S. ETF approvals (2024) spill over, boosting African inflows by 18%. Quote from Absa CEO Jason Quinn: “Regulation isn’t the enemy; ambiguity is. Clear frameworks will catalyze Africa’s $100B digital economy by 2030.”
- KeyTakeaway: Policymakers and firms must lobby for sandbox expansions; multinationals, use Africa as a reg-tech testing ground.
Challenges: The Trust Deficit and Beyond
Despite optimism, the report unflinchingly catalogs hurdles. Foremost, the confidence chasm—demand (85% interest among SMEs) outstrips adoption (32%) due to fears. Regulation anxiety tops the list: 76% of executives demand “explicit safeguards,” echoing 2024’s exchange collapses (e.g., Nigeria’s $200M losses). Security breaches, amplified by 28% cyber threats in 2025, push users to banks but deter 45% from entry. Knowledge gaps compound this: Only 22% of consumers grasp tokenomics, per surveys, locking $30B in sidelined capital. Market variances add friction—Kenya’s mobile trust accelerates uptake but fragments standards. Infrastructure lags (e.g., 40% unbanked in West Africa) exacerbate inequality. Visual: A bar chart shows regulation as 2x the barrier of costs. Takeaway: Without interventions, growth caps at 15% CAGR; firms must invest in edtech (e.g., Absa’s free webinars, reaching 50k users).
Opportunities: Bridging the Gap for Inclusive Growth
The report pivots to silver linings, framing challenges as entry points. Banks’ trust premium offers a $10B custody market by 2028—Absa pilots show 40% client retention uplift. Non-bank hybrids enable leapfrogging: Tokenised agri-finance in Ethiopia could boost yields 25% for 10M farmers. Education scales via apps (e.g., 60% uptake in pilot programs). Reg clarity unlocks FDI: Post-FSCA nods, South African inflows rose 22%. Case: Kenya’s M-Pesa-blockchain tie-up processed $1B remittances at 1% fees. Quote: “Trust isn’t built in boardrooms—it’s earned in wallets,” notes report co-author Dr. Leila Fourie. Takeaway: SMEs: Tokenise assets for 30% faster funding. Financiers: Launch reg-compliant products, targeting 20% market share in underserved segments.
Conclusions and Recommendations: A Call to Collective Action
In closing, the report envisions a trust-fueled digital renaissance: By 2030, digital assets could add 2–3% to Africa’s GDP ($200B+), if incumbents act. Recommendations are pragmatic: (1) Banks, deploy custody APIs (target: 50% coverage by 2026); (2) Regulators, fast-track sandboxes (aim: 80% compliance clarity); (3) Businesses, upskill via free tools (e.g., Absa’s portal); (4) Investors, back hybrids (projected 18% returns). Appendices detail market matrices (e.g., Nigeria: High demand, medium trust) and a 2025–2030 forecast model. Ultimately, Africa’s digital assets story isn’t about tech—it’s about people. As Quinn asserts, “Demand is here; delivery is destiny.” For stakeholders, the imperative: Build trust today, or watch opportunity tokenise elsewhere.
For the full PDF, download via Absa’s site: Africa Digital Assets Report 2025 PDF.
