When Kenya’s president signed the Virtual Assets Service Providers Bill into law last week, he marked more than just a regulatory milestone, signalling the dawn of a new financial era for Africa. Days later, Tether, the world’s largest digital asset company, has announced a strategic investment in Kotani Pay, a Kenyan-founded fintech that is building payment bridges between blockchain and local currencies across the continent.
The timing could hardly be more symbolic. Kenya’s decision effectively created one of Africa’s most progressive regulatory environments for digital assets. And Tether’s move, the company’s first major public investment in an African startup, suggests that global players are watching closely as the continent redefines its role in the digital economy.
Kotani Pay operates an on-ramp and off-ramp infrastructure that allows users to move between blockchain-based assets and traditional money with relative ease, a crucial service in regions where most people remain unbanked or underbanked. The company’s tools have already been used by humanitarian organisations, savings groups, and remittance platforms to deliver funds directly to users’ mobile wallets.
The investment, according to Tether, aims to empower people and businesses in Africa by simplifying access to digital assets and lowering barriers to participation in global finance.
“At Tether, we believe that blockchain technology plays a critical role in unlocking financial freedom,” said Paolo Ardoino, the company’s CEO. “Kotani Pay’s vision and strong regional presence make it the right fit to drive our shared goals in Africa and beyond. Together, we aim to empower enterprises and individuals to access 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.”
The partnership reflects a shift in how crypto companies view Africa: no longer just as a speculative market, but as a testing ground for real-world blockchain use cases.
Across Sub-Saharan Africa, cryptocurrency adoption is accelerating despite limited formal regulation. According to a Chainalysis report, the region recorded US$205 billion in on-chain transaction volume between July 2024 and June 2025, a 52 percent increase from the previous year. Much of that growth came from retail trading and remittances — suggesting that, for many Africans, digital assets are not about speculation but survival.
Markets such as Nigeria, Kenya, South Africa, and Ethiopia lead the expansion, driven by a mix of high inflation, currency volatility, and restricted access to international banking systems. For users navigating these economic realities, stablecoins such as Tether’s USDT — whose value is pegged to the U.S. dollar — offer a semblance of stability.
For Tether, investing in Kotani Pay extends its reach into one of the fastest-growing crypto regions in the world. For Kotani Pay, it is a validation of years spent building quietly at the intersection of blockchain innovation and financial inclusion.
“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,” said Felix Macharia, Kotani Pay’s CEO and co-founder. “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.”
Macharia’s optimism reflects a wider sentiment among African tech founders who see digital assets not as a disruption to traditional finance, but as a complement — a way to democratise access to financial services that conventional banks have long overlooked.
Yet challenges remain. Kenya’s legalisation of crypto trading, while historic, opens a complex policy debate around taxation, consumer protection, and money laundering risks. Regulators must now balance innovation with oversight in a region where the speed of technological change often outpaces the law.
Still, Tether’s investment could accelerate regulatory confidence across the continent. Analysts say that once global companies begin to pour capital into compliant African markets, other governments may follow Kenya’s lead, creating a domino effect that legitimises crypto trade and strengthens investor trust.
The move also underscores Africa’s growing influence in shaping the global crypto narrative. What began as a grassroots movement to bypass expensive remittance systems is evolving into a robust financial ecosystem capable of attracting multinational interest.
For millions of Africans, the hope is that partnerships like this one will go beyond hype and speculation, unlocking cheaper remittances, faster cross-border transactions, and new digital pathways to financial inclusion.