Tether Invests in Kotani Pay to Expand Web3 Access Across Africa
On October 21, 2025, Tether announced a strategic investment in Kotani Pay, marking a major step toward strengthening digital asset infrastructure across Africa.. Kotani Pay operates as an on-ramp and off-ramp infrastructure connecting Web3 users to local payment channels throughout the continent. This partnership addresses critical gaps in financial access for millions of Africans.
The investment aims to empower both individuals and businesses across Africa. The collaboration focuses on lowering barriers to global financial participation by providing easier access to digital assets. Kotani Pay is a Kenyan fintech startup that has built a robust local infrastructure tailored to regional market needs. This strategic move positions both companies to scale blockchain adoption throughout the continent.
Why Tether Chose Kotani Pay for African Expansion
Kotani Pay is a prominent name in the African financial technology landscape. The platform delivers solutions specifically designed for local market conditions. Its infrastructure aligns with Tether’s broader mission to expand blockchain use cases, including cross-border payments and digital asset management. The company provides systems that empower underserved communities to participate in the global economy.
Paolo Ardoino, CEO of Tether, stated that blockchain technology plays a role in unlocking financial freedom. Kotani Pay’s vision and strong regional presence make it the right fit to drive shared goals in Africa and beyond. The partnership seeks to reduce friction in cross-border transactions. It aims to build a more inclusive financial future while promoting informed use of digital assets.
Kotani Pay Infrastructure Supports Growing African Crypto Market
Sub-Saharan Africa’s on-chain crypto transaction volume exceeded $205 billion between July 2024 and June 2025. This represents a 52% year-on-year increase driven by retail usage and remittances. Key markets such as Nigeria, Kenya, South Africa, and Ethiopia have led to the expansion of users and use cases.
This growth reflects more than speculative interest and emerges from real needs in regions with high inflation, currency volatility, and limited banking infrastructure. Large populations remain unbanked or underbanked across the continent. Blockchain technology offers practical solutions to these financial challenges. The Tether investment in Kotani Pay directly addresses these needs through improved infrastructure.
How the Tether and Kotani Pay Partnership Benefits African Users
Kotani Pay provides on-ramp and off-ramp infrastructure for Web3 users. The platform builds bridges between digital assets like USDT and local payment methods, including mobile money and bank transfers. This enables users to seamlessly convert between cryptocurrency and local currencies, allowing them to access global financial networks with greater ease.
Felix Macharia, CEO and Co-founder of Kotani Pay, expressed excitement about being part of the Tether Ecosystem. He emphasized connecting millions of Africans to the global financial system through blockchain technology. The investment positions Kotani Pay to continue its work as a bridge to the on-chain economy. The goal involves advancing tools of wealth creation for African individuals and businesses.
Kotani Pay Investment Strengthens Cross-Border Payment Solutions
Small and medium-sized enterprises across the continent are finding value in cryptocurrency for operational payments and cross-border trade. Kotani Pay’s local infrastructure and Tether’s liquidity together can significantly reduce friction in international payments, giving African businesses direct access to global markets.
Import-export businesses can use stablecoins like USDT to make payments to international suppliers. This eliminates complex currency conversions, high banking fees, and lengthy settlement times. This capability proves particularly valuable in countries where foreign exchange controls or banking restrictions limit access to hard currencies. The Tether investment in Kotani Pay enables more efficient global trade participation.
Conclusion
The Tether and Kotani Pay partnership sets a new benchmark for how blockchain technology can transform individual daily life and business operations across Africa. The investment demonstrates growing recognition of Africa’s potential as a blockchain hub. It provides practical infrastructure to address real financial challenges facing the continent.
