KEY TAKEAWAYS
- Tether invests in Kotani Pay to enhance digital asset access in Africa, reducing barriers to global financial participation.
- Kotani Pay’s infrastructure supports local market needs, aligning with Tether’s mission to expand blockchain use cases.
- The partnership aims to address challenges in emerging markets, offering stability and efficiency in cross-border transactions.
- Sub-Saharan Africa’s crypto transaction volume grew by 52%, highlighting increasing grassroots adoption.
On October 21, 2025, Tether, a leading entity in the digital asset industry, announced a strategic investment in Kotani Pay. Kotani Pay is an on-ramp/off-ramp infrastructure that connects Web3 users to local payment channels across Africa. This investment aims to facilitate access to digital assets for individuals and businesses in Africa, thereby reducing barriers to global financial participation.
Kotani Pay has established itself as a significant player in the African financial technology landscape. Its infrastructure is designed to meet local market needs, aligning with Tether’s mission to expand blockchain use cases, including cross-border payments and digital asset management. By leveraging blockchain technology, Kotani Pay enables enterprises to manage international operations efficiently, offering practical solutions for accessing global liquidity and facilitating transactions.
Addressing Challenges in Emerging Markets
This investment is expected to make access to digital assets and cross-border payment systems more seamless, addressing long-standing challenges faced by small and medium-sized enterprises (SMEs) and corporates in emerging markets. These challenges include high transaction costs, long settlement times, and limited access to global financial networks. The partnership aims to provide businesses and individuals previously excluded from the international financial system with direct access to the global economy, supported by blockchain-powered solutions that offer stability, security, and efficiency.
According to a regional report by Chainalysis, Sub-Saharan Africa remains the smallest crypto economy. However, its usage patterns reveal significant insights into grassroots adoption and the increasing role of cryptocurrency in everyday financial activities. Between July 2024 and June 2025, on-chain crypto transaction volume in Sub-Saharan Africa exceeded $205 billion, marking a 52% year-on-year increase driven by retail usage and remittances. Key markets such as Nigeria, Kenya, South Africa, and Ethiopia are leading this expansion.
Empowering Financial Inclusion in Africa
Paolo Ardoino, CEO of Tether, stated, “At Tether, we believe that blockchain technology plays a critical role in unlocking financial freedom. Kotani Pay’s vision and strong regional presence make it the right fit to drive our shared goals in Africa and beyond.” This collaboration aims to empower enterprises and individuals to access digital assets for global operations, reduce friction in cross-border transactions, and promote a more inclusive financial future.
Felix Macharia, CEO and Co-founder of Kotani Pay, expressed enthusiasm about the partnership, noting that the strategic investment from Tether positions Kotani Pay to continue its work as a bridge to the on-chain economy. Macharia highlighted the opportunity to connect millions of Africans to the global financial system and advance the goals of building tools for wealth creation.
Tether and Kotani Pay are committed to advancing Africa’s financial future by scaling access to blockchain-based tools that drive efficiency, transparency, and inclusion. This investment sets a new benchmark for how blockchain technology can transform individual daily life and business operations across the continent.
The full announcement can be read here.
Why This Matters: Impact, Industry Trends & Expert Insights
Tether’s strategic investment in Kotani Pay aims to enhance digital asset infrastructure across Africa by improving access to blockchain-based financial solutions. This initiative is expected to address challenges such as high transaction costs and limited access to global financial networks, promoting financial inclusion in the region.
According to a recent report, African crypto adoption is rapidly growing due to economic necessity and grassroots momentum. This trend aligns with Tether’s investment in Kotani Pay, which seeks to leverage blockchain technology for cross-border payments and digital asset management in Africa.
Blockchain experts emphasize its transformative potential in Africa’s financial landscape, particularly in enhancing financial inclusion and facilitating cross-border transactions. This insight supports the significance of Tether’s collaboration with Kotani Pay in driving financial access and efficiency across the continent.
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