Tether, the issuer of the world’s largest stablecoin, USDT, announced Thursday a strategic investment in Shiga Digital, a fintech firm focused on providing blockchain-based financial services across Africa.
The partnership aims to support African businesses with cross-border payments, foreign exchange solutions, and treasury management through blockchain infrastructure. By integrating USDT into its services, Shiga Digital intends to help users bypass traditional banking systems, offering more direct access to global liquidity. Tether did not disclose the size of the investment.
Collaboration to Address Cross-Border Payment Challenges
Shiga Digital currently provides virtual accounts, over-the-counter (OTC) services, and FX management tools tailored to businesses across the continent. The collaboration with Tether aims to ease currency access for independent contractors and enterprises, particularly in regions with limited reliable banking infrastructure.
Both firms emphasized that the initiative could benefit legacy sectors such as oil and gas, which often face challenges with international transactions. By using stablecoins, Shiga Digital intends to create an on-chain payments gateway, allowing users to transact in USDT without converting to local currency. This could reduce friction in cross-border commerce and enhance transaction speed and stability.
Tether CEO Paolo Ardoino said the firm views stablecoins as a foundational element in evolving financial ecosystems. “By collaborating with innovators like Shiga Digital, we aim to deliver financial access and efficiency to African enterprises,” Ardoino said in a statement.
Stablecoins Gain Momentum Amid Africa’s Regulatory Shifts
The move comes as African governments explore the regulation and adoption of digital assets. Morocco’s central bank, for example, is reportedly drafting legislation to oversee the cryptocurrency sector. Across the continent, organizations are increasingly experimenting with blockchain to hedge against inflation and improve financial inclusion.
Shiga Digital CEO Abiola Shogbeni said the firm sees decentralized finance and stablecoins as key tools in reshaping how value is stored and transferred, especially in emerging markets. He also noted the growing role of self-custody in promoting asset control for individuals and businesses.
Tether’s investment in Shiga Digital reflects a broader push to expand stablecoin usage in regions underserved by traditional finance, signalling a shift toward blockchain-based tools in practical business settings.
