Stablecoin issuer Tether has announced a strategic investment in Kotani Pay,
a Kenyan financial technology company that connects blockchain applications to
mobile money and local banking systems across Africa.
The deal, whose value was not disclosed, aims to expand access to digital
assets and make cross-border payments faster and more affordable for African
businesses and individuals.
The company currently operates in Kenya, Nigeria, Ghana, and South Africa, supporting remittances, humanitarian cash transfers, and payments for the gig economy.
Tether Chief Executive Officer Paolo Ardoino said the investment reflects
growing confidence in Africa’s potential to lead in blockchain innovation and
financial inclusion.
“We believe blockchain technology plays a critical role in unlocking
financial freedom,” Ardoino said in a statement.
“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.”
Kotani Pay provides infrastructure that allows users to move money between digital assets and local payment platforms such as M-Pesa.
Kotani Pay Chief Executive and Co-founder Felix Macharia welcomed the
investment, saying it would help the company expand its services and strengthen
partnerships across the continent.
“We have witnessed the rising use of blockchain technology across Africa for
real-life applications,” Macharia said.
“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.”
According to blockchain analytics firm Chainalysis, Sub-Saharan Africa
remains the smallest crypto economy by value but has the highest rate of
grassroots adoption. Between July 2024 and June 2025, the region recorded
transactions worth US$205 billion, a 52 percent increase from the previous
year.
Most of this growth has come from retail users, remittance flows, and small
businesses using crypto to hedge against currency instability and high transfer
costs.
Tether’s entry through Kotani Pay could deepen the use of stablecoins in
everyday commerce, allowing users to hold digital currencies pegged to the US
dollar while transacting locally.
The partnership also underscores a shift in how Africans interact with
financial systems, moving from traditional banks toward blockchain-based
alternatives.
“This investment sets a new benchmark for how digital assets can transform
financial access across Africa,” Macharia said.
“It’s about connecting people, not speculation.”
