Tether expands footprint in Africa with investment in small startup

Tether said on Thursday it is expanding its interests in Africa with a "strategic investment" in the small startup Shiga Digital.

Shiga Digital is a platform that "offers pan-African access to blockchain-based financial solutions," including "virtual accounts, OTC services, treasury management, and foreign exchange (FX) services," according to a statement. Tether did not reveal the amount of the investment.

This is not Tether's first venture to give it exposure to the African market. Earlier this year, the African cryptocurrency exchange Quidax announced a collaboration with the world's largest stablecoin issuer. Tether has also announced initiatives with a connection to Africa, such as a program related Bitcoin mining and an investment in the cross-border payment services firm MANSA, which services clients based in Africa.

"This collaboration marks a significant step toward addressing longstanding financial barriers faced by African businesses, particularly in cross-border payments and accessing global liquidity, by enabling a seamless, blockchain-based financial infrastructure powered by USDT," Tether said in its statement. "It will also support treasury and FX management for legacy industries, such as oil and gas, both within and outside the African continent."

Shiga Digital has a small social media presence on X. According to its LinkedIn profile, the company is based in Abu Dhabi in has no more than 10 employees. Tether is the world's largest stablecoin issuer and has been consistently generating billions of dollars in profit.

Providing people and businesses in less-developed nations access to USDT, a U.S. dollar-pegged stablecoin, and helping them avoid the vagaries of inflation is a principal part of Tether's strategy.

"Africa’s digital asset landscape is rapidly evolving. Recent developments, such as Morocco’s central bank moving to prepare a draft law to regulate cryptocurrencies, reflect the continent’s readiness to embrace blockchain innovation," Tether said in its statement. "In addition, there is a growing interest in digital assets across Africa."

Tether CEO Paolo Ardoino added, “By collaborating with innovators like Shiga Digital, we aim to deliver financial access and efficiency to African enterprises. Together, we are not just imagining a future powered by blockchain technology, we are building it.”