Tether Backs Kenyan Startup Kotani Pay to Secure Stablecoin Dominance in East Africa
Tether is investing in Kotani Pay, a Kenyan startup that connects blockchain protocols to local mobile money systems. This integration allows users to send USDT directly to M-Pesa accounts, bypassing traditional commercial banking routes and reducing fees associated with remittances.
The investment represents a strategic move by Tether to dominate the East African market and ensure its USDT stablecoin remains the primary settlement currency in Africa. Kotani Pay's API bridges enable users to send digital dollars directly into mobile money wallets, eliminating the need for correspondent banks and associated fees.
Tether's play is also a countermove against Circle's heavily regulated USDC, which has been expanding aggressively in Africa. By securing infrastructure partnerships with local startups like Kotani Pay, Tether aims to capture market share and secure its position as a leading stablecoin issuer.