Digital asset giant tether invests in african fintech Kotani Pay to expand blockchain payment infrastructure

Partnership targets financial inclusion across Sub-Saharan Africa through cryptocurrency on-ramp solutions and cross-border transaction capabilities

L – r: ceo kotani pay -felix macharia. Co founders – samuel kariuki, jonathan morgan & brian kimotho.

Tether, the world's largest digital asset company, has announced a strategic investment in Kotani Pay, an African crypto asset service provider specializing in on-ramp and off-ramp infrastructure that bridges Web3 users with local payment systems across the continent.

The investment aims to expand access to digital assets for individuals and businesses throughout Africa while reducing barriers to participation in global financial systems. Kotani Pay has established operations across multiple African markets, developing solutions tailored to regional payment infrastructure and regulatory requirements.

The partnership aligns with Tether's objective to broaden blockchain adoption for use cases including international payments and digital asset management, while creating systems that enable underserved populations to engage with the global economy. Kotani Pay's platform leverages blockchain technology to help enterprises manage cross-border operations, providing businesses and individuals with tools to access international liquidity and execute transactions efficiently.

The collaboration addresses persistent challenges facing small and medium enterprises and corporations in emerging markets, including elevated transaction costs, extended settlement periods, and restricted access to international financial networks. Through blockchain-powered solutions, the partnership aims to deliver stability, security, and operational efficiency to businesses and individuals previously excluded from global financial systems.

According to Chainalysis regional analysis, Sub-Saharan Africa represents the smallest cryptocurrency economy by transaction volume, though usage patterns indicate significant grassroots adoption and increasing integration of crypto into everyday financial activities. The region is experiencing a fundamental shift in how populations access and utilize financial tools, with cryptocurrency playing an expanding role in this transformation.

Between July 2024 and June 2025, on-chain cryptocurrency transaction volume in Sub-Saharan Africa exceeded $205 billion, representing a 52% year-over-year increase driven primarily by retail usage and remittance flows. Nigeria, Kenya, South Africa, and Ethiopia lead regional expansion in both user base and use cases. This growth reflects practical needs in markets characterized by high inflation, currency volatility, limited banking infrastructure, and substantial unbanked or underbanked populations, rather than purely speculative interest.

"At Tether, we believe that blockchain technology plays a critical role in unlocking financial freedom," said Paolo Ardoino, CEO of Tether. "Kotani Pay's vision and strong regional presence make 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."

Felix Macharia, CEO and Co-founder of Kotani Pay, emphasized the strategic value of Tether's backing. "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. We are excited to be part of the Tether Ecosystem and to leverage the shared knowledge to advance the goals of building tools of wealth creation for African individuals and businesses."

Both organizations have committed to advancing Africa's financial infrastructure by scaling access to blockchain-based tools designed to drive efficiency, transparency, and inclusion. The investment represents a benchmark for how blockchain technology can transform both individual financial access and business operations across the continent, with the partnership aiming to build a more resilient and inclusive digital economy for Africa.

The collaboration follows a period of accelerated cryptocurrency adoption across Sub-Saharan Africa, driven by structural economic factors including inflation pressures, foreign exchange constraints, and gaps in traditional banking coverage. Blockchain-based payment rails offer alternatives to conventional financial infrastructure, enabling faster and lower-cost international transfers while providing access to dollar-denominated digital assets in markets with volatile local currencies.

Kotani Pay's infrastructure integrates with mobile money platforms and local payment channels widely used across Africa, creating interoperability between traditional financial systems and blockchain networks. This approach addresses the practical challenge of converting between cryptocurrency and local fiat currencies, which remains a critical barrier to mainstream adoption in many African markets.