Tether, a leading stablecoin issuer, has embarked on a significant investment journey by partnering with Kotani Pay, a fintech disruptor based in Kenya. This collaboration aims to enhance digital asset accessibility while tackling the hurdles of cross-border payments throughout Africa. With a shared vision of financial inclusion, Tether and Kotani Pay are set to harness blockchain technology to empower unbanked populations and drive economic growth.
A Strategic Leap: Tether’s Investment Explained
Tether has made a pivotal investment in Kotani Pay to expand financial accessibility in Africa through innovative blockchain solutions. Although the exact figure remains undisclosed, Tether’s commitment is clear: to provide a robust infrastructure that allows smoother transactions for businesses and individuals alike. “We believe blockchain technology plays a critical role in unlocking financial freedom,” stated Tether CEO Paolo Ardoino, underscoring the transformative potential of this partnership.
The fusion of Tether’s resources with Kotani Pay’s regional expertise promises to create a bridge between traditional banking systems and the emerging digital economy. Ardoino noted, “Kotani Pay’s regional expertise and infrastructure make it a strong partner to drive our shared vision of expanding digital asset access and reducing friction in cross-border transactions.” This collaboration is not just about finances; it’s about reshaping the way millions of Africans interact with their economic systems.
The Crypto Surge in Sub-Saharan Africa
Sub-Saharan Africa, despite being the smallest crypto economy, has shown remarkable growth in blockchain adoption, underscored by a staggering 52% increase in on-chain cryptocurrency transactions – reaching approximately $205 billion between July 2024 and June 2025. Analysts point to factors such as remittance inflows, retail users, and small businesses navigating currency instability as key drivers of this expansion.
Countries like Nigeria, Kenya, South Africa, and Ethiopia are leading this growth wave, where cryptocurrencies serve not just as investment vehicles but also as essential financial tools. The uniqueness of Sub-Saharan Africa lies in its grassroots adoption rates, which are among the highest globally, indicating a shift towards practical uses of crypto that resonate with everyday economic needs.
Kotani Pay: Building Financial Bridges
The core mission of Kotani Pay is to simplify access to digital finance for unbanked and underbanked populations. The startup has ingeniously developed a middleware that connects blockchain applications to local payment networks, thus enabling users to convert stablecoins into local currencies using simple mobile interfaces—often without the need for internet access. This innovation is crucial in a region where many families lack conventional banking access.
“This strategic partnership with Tether positions us to scale faster as a bridge between the on-chain economy and millions of Africans who need access to affordable financial tools,” Kotani Pay CEO Felix Macharia remarked. The company’s services include facilitating remittances, humanitarian cash transfers, and payments in the gig economy, having processed an impressive $23 million in transactions, with an average transaction size of $150,000. By significantly reducing remittance fees and facilitating faster transactions, Kotani Pay is reshaping financial landscapes.
Looking Ahead: Expansion and Regulatory Landscape
Kotani Pay is set to expand its operations to new markets such as Rwanda, Senegal, Ivory Coast, Tanzania, and Nigeria, all bolstered by a recent $2 million pre-seed funding round. This injection of capital will pave the way for new products like Reconset and Money Ledger, aimed at enhancing user experience and operational efficiency. The investment also reflects an evolving regulatory landscape where central banks are paying closer attention to new blockchain solutions.
“As we engage with central banks across Africa, it’s clear that regulatory bodies are getting excited about these innovative use cases,” says Macharia, pointing to positive developments in Botswana, Mauritius, and South Africa regarding Virtual Asset Service Provider Licenses. This supportive regulatory environment is essential for deepening trust and integration of blockchain solutions in everyday commerce, signifying a major shift away from traditional banking norms.
Transforming Finance: The Path Forward
The partnership between Tether and Kotani Pay signifies a fresh approach to fintech in Africa—one where technology not only facilitates transactions but also empowers communities. As both entities work diligently to expand their reach across the continent, they are laying down the groundwork for a future in which financial tools are accessible to all.
This collaboration invites us to rethink the global financial system, highlighting the need for innovative solutions to bridge economic divides. With each transaction facilitated by Kotani Pay, they are not merely exchanging currency; they are fostering a more inclusive financial environment that can uplift millions. As digital finance continues to evolve, the impact of this partnership could well redefine the contours of the African economic landscape for generations to come.
