Tranzmit Payment Services, the payments subsidiary of U.S.-based Tranzmit Corporation, has integrated Yellow Card’s Payments API to accelerate cross-border money flows between the United States and Nigeria, as fintech companies increasingly turn to stablecoins to reduce the cost and delays associated with traditional settlement channels.
The partnership targets Tranzmit’s USA-to-Nigeria corridor, which the companies described as one of its largest and fastest-growing routes. The integration gives Tranzmit a direct settlement path into Nigeria using Yellow Card’s stablecoin infrastructure, allowing the company to move funds between U.S. dollar-pegged stablecoins and local currency.
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Stablecoins are digital assets designed to maintain a relatively stable value by being pegged to an asset such as the U.S. dollar. In this case, the technology is being used as a settlement layer rather than simply as a cryptocurrency investment, allowing Tranzmit to move dollars across borders before converting them into local currency.
The move could put additional pressure on traditional correspondent banking channels, which cross-border payment companies have historically relied on to move money between countries. Such channels can involve multiple intermediaries, foreign-exchange costs and settlement delays, particularly in emerging markets where access to dollars can be constrained.
