Tether, the company behind the USDT stablecoin, has announced it has invested in Kotani Pay, a Kenyan on-and-off-ramp crypto startup.
No details regarding the type or amount of investment has been mentioned in the press release. However, other sources refer to the investment as a Tier 2 strategic, which is often aimed at expanding capabilities, building partnerships, or gaining exposure to an emerging technology, market, or geography – without full integration or acquisition.
Tier 2 investments are strategic but peripheral – e.g., minority stakes, pilot collaborations, ecosystem plays, or optionality bets.
Kotani Pay provides crypto on and off-ramping services via an API service enabling users to easily convert their crypto into fiat and vice versa.
This latest investment comes two years after the startup closed $2 million funding round in 2023 from:
While no statistics have been shared on Kotani Pay’s growth since the last funding, the announcement highlights the overall growth of the on-chain economy in Sub-Saharan Africa as a key reason for the investment.
Tether also see’s Kotani Pay’s ‘strong regional presence’ as a ‘right fit’ to drive its shared goals in Africa and beyond.
At the same time, the announcement also mentions Kotani Pay’s infrastructure as aligning with ‘Tether’s broader mission to expand blockchain use cases, such as cross-border payments and digital asset management.’
By leveraging blockchain technology, Tether says the startup ‘enables enterprises to manage international operations efficiently, offering businesses and individuals practical solutions to access global liquidity and transact with ease.’
“This investment will make access to digital assets and cross-border payment systems seamless, addressing long-standing challenges faced by SMEs and corporates in emerging markets such as high transaction costs, long settlement times, and limited access to global financial networks.”
Tether sheds light on the fact that, despite Africa being the smallest crypto economy, its usage patterns reveal ‘significant insights into grassroots usage and the increasing role of crypto in everyday financial activities.’
In 2025, Tether has partnered with brands and institutions, and invested in a number of crypto startups across Africa, particularly those offering stablecoin solutions. This list includes:
