Tether, the company behind the world’s largest stablecoin, has made a strategic investment in Kenyan fintech Kotani Pay, signaling growing interest in Africa’s nascent digital asset market.
- •The move aims to strengthen local on-ramp and off-ramp infrastructure, enabling easier access to cryptocurrencies and cross-border payments for individuals and businesses.
- •Kotani Pay, a Crypto Asset Service Provider, has built a network connecting African users to local payment channels, addressing the longstanding challenges of high transaction costs, slow settlements, and limited access to international financial systems.
- •Tether’s move coincides with its reaching 500 million users and a total USDT stable coin supply of US$182 billion.
“At Kotani Pay, we have been fortunate to witness and build on the rising usage of blockchain technology on the continent across a variety of use cases. This strategic investment from Tether better positions us to continue our work as a bridge to the on-chain economy, connecting millions of Africans to the global financial system,” said Felix Macharia, CEO and Co-founder at Kotani Pay.
The investment positions the startup to expand its services to meet growing demand for blockchain-based financial solutions in the region.
According to Chainalysis, Sub-Saharan Africa remains the smallest crypto market globally, but transaction volumes are rising sharply. On-chain crypto activity in the region reached more than US$205 billion between July 2024 and June 2025.
Key markets, including Nigeria, Kenya, South Africa, and Ethiopia, are leading the expansion, highlighting growing grassroots adoption despite limited traditional banking infrastructure and volatile local currencies.
“Kotani Pay’s vision and strong regional presence makes it the right fit to drive our shared goals in Africa. Together, we aim to provide businesses and individuals with access to digital assets for their global operations, reduce friction in cross-border transactions, and build a more inclusive financial future while promoting the informed use of digital assets,” said Paolo Ardoino, CEO of Tether.
For small and medium-sized enterprises in the continent, the combination of Kotani Pay’s local infrastructure and Tether’s liquidity could reduce friction in cross-border payments and provide direct access to global markets.
Analysts note that while speculative trading has often dominated media coverage of crypto in Africa, the current trend reflects practical use cases such as remittances and operational payments for businesses.
Founded in 2020 by Brian Kimotho, Daniel Kimotho, Felix Macharia, Samuel Kariuki, and Stephen Kiarie, Kotani Pay had also partnered with other crypto partners like Yellowcard, DCG, Fonbank, Celo’s Valora, and Mercy Corps.
