Caroline Bishop
Oct 21, 2025 12:53
Tether invests in Kotani Pay to enhance Africa’s digital asset infrastructure, aiming to streamline cross-border payments and empower local businesses through blockchain technology.
Tether, a leading entity in the digital asset realm, has made a strategic investment in Kotani Pay, an infrastructure service connecting Web3 users with local payment systems across Africa. This collaboration seeks to bolster digital asset accessibility and diminish barriers to global financial engagement, according to tether.io.
Kotani Pay’s Role in African Fintech
Kotani Pay has carved a niche in the African fintech landscape by offering solutions tailored to regional market demands. The company’s infrastructure supports Tether’s mission to proliferate blockchain applications, including cross-border payments and digital asset management, while providing comprehensive access to financial tools. This initiative aims to empower underserved communities to participate in the global economy through blockchain technology, enhancing efficiency in international operations for enterprises.
Addressing Challenges in Emerging Markets
The investment is poised to simplify access to digital assets and cross-border payment systems, tackling longstanding issues faced by SMEs and corporates in emerging markets. These challenges include high transaction costs, delayed settlements, and restricted access to global financial networks. With blockchain-enabled solutions, businesses and individuals previously excluded from the international financial system can now access global economies with increased stability, security, and efficiency.
Crypto Adoption in Sub-Saharan Africa
Despite being the smallest crypto economy, Sub-Saharan Africa is experiencing a shift in financial tool access and usage, with cryptocurrency playing a central role. From July 2024 to June 2025, on-chain crypto transaction volume in the region surpassed $205 billion, reflecting a 52% year-on-year growth propelled by retail transactions and remittances. This growth is particularly evident in key markets such as Nigeria, Kenya, South Africa, and Ethiopia, driven by real economic needs amidst high inflation and limited banking infrastructure.
Leadership Perspectives
Paolo Ardoino, CEO of Tether, emphasized the critical role of blockchain technology in unlocking financial freedom, highlighting Kotani Pay’s alignment with Tether’s goals in Africa. Felix Macharia, CEO and Co-founder of Kotani Pay, expressed excitement about leveraging Tether’s ecosystem to advance wealth creation tools for African individuals and businesses. Both companies are committed to scaling blockchain-based financial tools that enhance efficiency, transparency, and inclusivity.
This investment marks a significant step in transforming individual and business operations across Africa, setting a new standard for blockchain technology’s potential to build a resilient and inclusive digital economy.
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