Tether Announces Strategic Investment in African Blockchain Startup Shiga Digital

Tether, the issuer of the world’s largest stablecoin USDT, has announced a strategic investment in Shiga Digital, a pan-African blockchain financial platform, to advance on-chain financial solutions across the continent. The move, revealed on June 5, aims to address longstanding barriers to financial access for African businesses, particularly in cross-border payments, treasury management, and foreign exchange (FX) services. Tether has not disclosed further details about the investment, such as the amount involved.

Shiga Digital: Bridging Traditional Finance and Blockchain

Shiga Digital provides a suite of blockchain-based financial tools tailored for African enterprises, including virtual accounts, over-the-counter (OTC) trading, treasury management, and FX solutions. By integrating Tether’s USDT, a stablecoin pegged to the U.S. dollar, the platform seeks to streamline cross-border transactions and improve access to global liquidity. According to Tether’s official statement, this collaboration will support industries such as oil and gas, both within Africa and beyond, by offering efficient, blockchain-powered financial infrastructure.

The African financial landscape has long faced challenges such as high remittance costs, limited banking access, and inefficiencies in cross-border trade. Shiga Digital’s platform aims to address these issues by leveraging USDT’s stability and blockchain’s transparency to provide cost-effective, scalable solutions. “By collaborating with innovators like Shiga Digital, we aim to deliver financial access and efficiency to African enterprises,” said Paolo Ardoino, CEO of Tether. “Together, we are not just imagining a future powered by blockchain technology, we are building it.”

Tether’s Broader Strategy in Emerging Markets

This investment aligns with Tether’s ongoing efforts to expand its presence in emerging markets. Earlier this year, the company partnered with an African leading crypto exchange Quidax, and invested in MANSA, a cross-border payment platform, signaling a strategic focus on building financial infrastructure in regions with high blockchain adoption potential. Tether’s recent expansion into Latin America, including an investment in Chilean crypto platform Orionx, further illustrates its global ambitions to promote financial inclusion through stablecoin technology.

Tether’s financial strength underpins these initiatives. With nearly $120 billion in U.S. Treasuries and a reported $13 billion in profits for 2024, Tether has the resources to pursue strategic investments worldwide. The company’s USDT stablecoin, with a circulating supply exceeding $150 billion, remains a cornerstone of the global crypto economy.

Tether’s investment comes at a time when stablecoins are under increasing scrutiny globally. In the U.S., recent legislative progress on stablecoin regulation has raised questions about Tether’s compliance. In Europe, Tether has scaled back operations due to MiCA (Markets in Crypto-Assets) compliance challenges but continues to support regulated initiatives like StablR, a Malta-based stablecoin issuer.

In a recent Bloomberg interview, Tether CEO Paolo Ardoino stated that the company’s "main interest" will focus on regions outside the U.S. Data shows that stablecoin payment transactions reached $51.4 billion in 2024, a significant increase from the previous year, with Tether’s USDT holding a market share of 62% to 91% in most global regions. Singapore, Hong Kong, and Japan collectively account for 36.3% of global stablecoin volume, far surpassing the U.S.’s 18.7%. Ardoino noted that Tether will continue to prioritize emerging markets like Latin America, Asia, and Africa, while not ruling out the possibility of issuing a new stablecoin in the U.S. if an "appropriate regulatory framework" emerges.

Africa’s Growing Crypto Ecosystem

Africa’s blockchain sector is gaining momentum, driven by increasing digital asset adoption and regulatory developments. For instance, Morocco’s central bank is preparing a draft law to regulate cryptocurrencies, reflecting the continent’s openness to blockchain innovation. Tether’s investment could accelerate blockchain adoption and improve financial access across Africa.

The continent’s high mobile penetration and growing interest in digital assets make it a fertile ground for blockchain solutions. Stablecoins like USDT are particularly appealing for African businesses, offering a reliable medium for international trade and remittances amid volatile local currencies. Shiga Digital’s focus on practical financial services — rather than speculative products — aligns with Tether’s vision of making blockchain technology accessible for everyday business needs.

Looking Ahead

For Shiga Digital, Tether’s backing provides not only capital but also infrastructure and brand credibility. The partnership could position the platform as a major player in Africa’s blockchain finance space, competing with other regional players like Quidax and MANSA. However, Shiga Digital’s limited social media presence suggests it is still in the early stages of building its brand. Whether Shiga Digital can capitalize on Tether’s investment and seize the growing demand for stablecoins in Africa will determine its ability to play a pivotal role in the continent’s future financial ecosystem.