Tether Invests in Shiga Digital to Expand USDT Adoption and Cross-Border Payments in Africa
Tether, the issuer of the USDT stablecoin, has made a strategic investment in African fintech Shiga Digital, aiming to expand USDT’s adoption and liquidity across Africa. This collaboration enables Shiga Digital to offer USDT-based virtual accounts, cross-border payments, and OTC trading to individuals and businesses, addressing challenges in Africa’s fragmented financial markets and making dollar-based transactions more accessible. Tether’s CEO Paolo Ardoino confirmed the investment while emphasizing a careful, low-profile expansion strategy, without disclosing specific financial details. With USDT already holding over $154 billion in market cap and $96 billion in daily trading volumes globally, leveraging Shiga Digital’s infrastructure may reduce reliance on volatile local currencies and improve payment efficiency for African businesses, freelancers, small enterprises, and the unbanked. Analysts expect the partnership to boost USDT volumes, drive wider usage of blockchain-based financial services, and accelerate DeFi growth in Africa. Regulatory authorities are likely to closely monitor the development to ensure compliance and sustainability. This move underscores Africa’s rising importance in digital finance and fits with Tether’s global expansion plans. Crypto traders should watch for changes in USDT flows, regional trading activity, and any regulatory responses, as these factors could influence market trends.
Bullish
Tether’s strategic investment in Shiga Digital directly supports greater USDT adoption and increases its transactional utility across Africa—a region with significant demand for stable currency solutions due to volatile local markets. The expansion of USDT-based cross-border payments is likely to boost both the liquidity and trading volumes of USDT, especially as African businesses, freelancers, and unbanked populations seek reliable alternatives to unstable national currencies. The involvement of a major stablecoin issuer like Tether signals confidence in the region’s digital finance potential and may attract further institutional and retail interest. While increased regulatory scrutiny is expected, the partnership’s focus on compliance enhances long-term prospects. Historically, moves that expand a stablecoin’s real-world utility and market penetration—especially in emerging markets—have had a positive effect on short- and mid-term price stability and trading activity. Therefore, the outlook for USDT following this development is bullish.