Tether has made a strategic investment in Kotani Pay to accelerate the adoption of digital assets and cross-border payments across Africa. The move pairs the stablecoin issuer’s scale with Kotani Pay’s on-ramp and off-ramp rails that connect Web3 users to local payment channels. The partners say the goal is to broaden access to efficient, low-cost financial tools for consumers, SMEs, and larger enterprises.
Strategic Investment Overview
The undisclosed investment positions Kotani Pay to deepen its infrastructure and expand coverage in key African markets. Tether frames the deal as part of a wider effort to translate blockchain utility into everyday financial services, including remittances and treasury operations. Kotani Pay will focus on making international transfers simpler, faster, and more predictable for users who have historically faced friction in global transactions.
About Tether and Kotani Pay
Tether operates the largest stablecoin in the market and has increasingly backed projects that turn blockchain into practical rails for payments and savings. Kotani Pay has built localized integrations that align crypto liquidity with familiar, regulated payment methods used by individuals and businesses. Together, the companies plan to connect on-chain value to off-chain needs, creating a bridge that fits local compliance and user behaviors.
Tackling Cross-Border Frictions
Both firms say the rollout is designed to address high fees, long settlement times, and limited access to global networks that burden emerging-market users. By leveraging stable digital assets for transfer and settlement, Kotani Pay aims to cut costs while improving speed and transparency. Enterprises managing cross-border operations would gain tools to hold value, move funds, and reconcile payments with fewer intermediaries.
Market Context in Sub-Saharan Africa
Sub-Saharan Africa remains a smaller crypto economy by global share, yet adoption is increasingly grassroots and utility driven. Between July 2024 and June 2025, on-chain transaction volume in the region exceeded 205 billion dollars, a 52 percent year-on-year increase led by retail activity and remittances. Nigeria, Kenya, South Africa, and Ethiopia stand out as growth markets where inflation, currency volatility, and banking gaps push users toward alternative rails.
Adoption Drivers and Use Cases
For many users, digital assets function as a settlement layer that complements mobile money and bank transfers rather than replacing them. SMEs rely on stablecoins to invoice international clients, hedge currency exposure, and pay suppliers without delays that strain working capital. Households use crypto-enabled channels to receive remittances, preserve purchasing power, and move value across borders with less friction.
Leadership Commentary
“Tether believes blockchain can unlock financial freedom, and Kotani Pay’s regional footprint aligns with that mission,” said Paolo Ardoino, Tether’s chief executive, in announcing the deal. He said the collaboration aims to reduce friction in cross-border transactions and promote informed access to digital assets for enterprises and individuals. Kotani Pay’s co-founder and chief executive, Felix Macharia, said the investment strengthens the company’s role as a bridge to the on-chain economy for millions of Africans.
Implementation and Next Steps
Near-term priorities include scaling integrations with local payment providers and expanding enterprise offerings for treasury, payroll, and vendor payouts. The partners intend to standardize flows that convert between fiat and digital assets while maintaining compliance and security controls. Over time, they expect improved liquidity, better user experiences, and broader merchant acceptance to compound regional network effects.
Tether’s backing of Kotani Pay underscores a pragmatic shift in Africa’s crypto landscape, from speculation toward payment and liquidity infrastructure. If execution matches the stated aims, SMEs and consumers could see faster settlement, lower costs, and more reliable access to global financial rails. The collaboration sets a benchmark for how stablecoin liquidity and localized payment rails can converge to support a more inclusive digital economy in Africa.