Tether continues to expand its presence in the African fintech market by announcing strategic investments in the Kenyan startup Kotani Pay. This partnership aims to transform the continent’s digital financial infrastructure and promote financial inclusion for millions of users.
This is reported by Business • Media
Kotani Pay: Technologies for Accessible Crypto Payments
Kotani Pay is an infrastructure platform that provides on-chain access to local payment channels, enabling transfers between the traditional financial system and Web3. A unique feature of the startup is its ability to facilitate crypto payments even without an internet connection, making digital assets accessible to a wide range of users via mobile phones.
According to Tether’s CEO Paolo Ardoino, these investments are a step towards increasing the participation of African businesses and users in the global economy. The partnership will help lower barriers to entry into the financial ecosystem and develop cross-border payments based on blockchain technology.
“We believe that blockchain technology plays a critical role in unlocking financial freedom. Kotani Pay’s vision and its strong regional presence make it an ideal partner for advancing our shared goals in Africa and beyond. Together, we aim to empower businesses and individuals to utilize digital assets for global transactions, reduce friction in cross-border transfers, and build a more inclusive financial future,” said Tether CEO Paolo Ardoino.
Africa: Rapid Growth of Crypto Activity and Tether’s Role
According to Chainalysis, the region of Sub-Saharan Africa, while remaining the smallest crypto-economic market in the world, is showing the highest growth rates in user activity. From July 2024 to June 2025, the volume of on-chain transactions in the region exceeded $205 billion, which is a 52% increase compared to the previous year. The main drivers remain remittances, business payments, and inflation protection.
Countries such as Nigeria, Kenya, South Africa, and Ethiopia have become centers of crypto activity, where digital currencies are actively used due to the volatility of local currencies and limited access to banking services.
In September 2023, Kotani Pay raised $2 million in investments to enhance its offline crypto payment capabilities. The new strategic partnership with Tether will allow for the scaling of this technology and bring millions of users into the global financial system.
“This strategic partnership with Tether will enable us to continue operating as a bridge to the on-chain economy, connecting millions of Africans with the global financial system. We are excited to join the Tether ecosystem and leverage our combined expertise to create wealth-building tools for African people and businesses,” noted Kotani Pay CEO and co-founder Felix Macharia.
Tether has previously invested in the development of Africa’s financial infrastructure. In March 2023, the company launched YellowCard cards for making payments in USDT without a bank account, and in April 2025, it announced the deployment of hash rate on mining facilities in remote areas of the continent, as well as, in collaboration with Quidax, initiated a cryptocurrency literacy educational program in Nigeria.
Through its investment in Kotani Pay, Tether aims to become a catalyst for creating an efficient, transparent, and inclusive financial ecosystem for African businesses and populations. This partnership seeks to simplify access to global financial tools and reduce barriers between traditional and digital markets.
It is worth noting that the high cost of traditional remittances in Sub-Saharan African countries has been one of the factors driving the widespread use of stablecoins in the region.