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South Africa’s Absa is exploring membership in China’s yuan‑settlement network, while Citadel CEO Ken Griffin revealed AI agents can complete high‑skill research in hours, a shift that may alter finance hiring practices.

Background

Absa, one of South Africa’s largest banks, has opened a Beijing subsidiary to deepen ties with China, a country pushing yuan internationalisation through bilateral swaps, the Cross‑Border Interbank Payment System (CIPS) and other channels. CIPS, launched in 2015, is China’s equivalent of SWIFT and allows direct renminbi settlements. In September 2025, Standard Bank became the first African lender to use CIPS for yuan transactions, signalling a broader move away from dollar‑mediated flows that expose firms to double currency risk and high correspondent fees.

Citadel, a global hedge‑fund powerhouse, traditionally relies on teams of quantitative researchers and PhDs to build models and analyse data. The firm’s new AI agents can now gather data, run models and produce preliminary analyses in hours or days, a pace that previously required weeks or months by human teams.

What Happened

Absa is evaluating membership in a yuan‑based payments platform that would allow it to settle cross‑border transactions directly in Chinese renminbi. The move follows its Beijing subsidiary opening and the broader trend of African banks seeking to bypass the US dollar. Standard Bank’s recent CIPS adoption in September 2025 demonstrates the feasibility of such settlements.

Meanwhile, Ken Griffin, CEO of Citadel, publicly admitted that AI agents at the firm now complete complex finance tasks in hours or days that once took teams of PhDs weeks or months. Griffin described the speed of change as “depressing,” underscoring the rapid pace at which AI is transforming analytical roles in finance.

Market & Industry Implications

  • Absa’s potential yuan settlement could reduce transaction costs, speed settlement times and lower exposure to dollar volatility for African importers and exporters, potentially attracting more corporate clients seeking efficient cross‑border payments.
  • The shift to direct yuan settlement may prompt other African banks to accelerate participation in CIPS or similar platforms, intensifying competition in the region’s payment infrastructure.
  • Citadel’s AI‑driven research pipeline suggests a broader industry trend where high‑skill research roles are being compressed into shorter timeframes, potentially reshaping talent demand toward individuals who can orchestrate AI tools rather than perform traditional model building.
  • Both developments highlight a move away from legacy systems—Absa away from dollar‑centric correspondent banking, Citadel away from large PhD teams—toward more efficient, technology‑enabled operations.

What to Watch

  • Absa’s formal decision on joining a yuan‑settlement platform, expected in the next quarter, will signal the pace of adoption across Africa.
  • Standard Bank’s ongoing integration of CIPS and any subsequent African banks that follow suit will indicate the scalability of the model.
  • Citadel’s future public statements on AI deployment and any changes in hiring or training programs will provide insight into the evolving skill set required in hedge funds.
  • Regulatory updates on China’s capital controls and renminbi convertibility could affect the viability of direct yuan settlements for African banks.