Tether and Shiga Digital Expand Their Influence in Africa

Tether Invests in Shiga Digital

Tether, whose stablecoin USDT has a market capitalization of $153 billion, has invested in Shiga Digital, a platform that provides blockchain financial services such as virtual accounts, OTC trading, treasury management, and foreign exchange (FX) services. Although the investment amount was not disclosed, Tether emphasized that the partnership will help address long-standing financial barriers in Africa, especially in the areas of cross-border payments and access to global liquidity. Shiga Digital, which has a team of less than 10 employees, is positioned to support African businesses, from traditional industries such as oil and gas to independent contractors, through USDT integration.

The event comes shortly after Tether announced its investment in Orionx, a Chilean cryptocurrency exchange, signaling the company’s coordinated expansion strategy in emerging markets. Tether has also previously partnered with African exchange Quidax and signed a memorandum of understanding (MOU) with the government of Guinea to promote digital transformation.

Africa and blockchain potential

Africa is witnessing a rapidly growing digital asset ecosystem. Countries like Morocco are reportedly preparing regulatory frameworks to regulate cryptocurrencies, while businesses are increasingly using stablecoins to hedge against inflation and simplify cross-border payments. With a young population, low banking access (only about 43% of the population has a bank account, according to the World Bank), and a growing need for international transactions, Africa is fertile ground for blockchain-based financial solutions.

Shiga Digital capitalizes on this opportunity by providing an on-chain trading gateway, allowing users to make transactions directly using USDT without converting to local fiat. This reduces costs, speeds up transactions, and helps industries such as oil and gas, agriculture, as well as independent contractors access foreign currency.

Tether's Strategy in Emerging Markets

Tether, which has quarterly profits exceeding $1 billion and a $120 billion U.S. Treasury bond portfolio, is leveraging its strong financial resources to expand its footprint in emerging markets. The investment in Shiga Digital is part of Tether’s long-term strategy to drive USDT adoption in regions with underdeveloped traditional banking systems. Africa, with its potential for digital economic growth, is an ideal target.

Tether’s backing not only brings capital but also boosts Shiga Digital’s credibility and market reach. However, given its small size and limited social media presence, Shiga Digital will need to invest heavily in infrastructure and marketing to compete with other financial platforms in Africa.

Tether’s investment in Shiga Digital has the potential to transform the way African businesses access global finance. By integrating USDT, Shiga Digital helps:

• Traditional cross-border payments often take days with high fees. USDT allows for near-instant transactions with lower fees.

• Businesses and independent contractors can access foreign currency more easily, especially in industries like oil and gas where international payments are key.

• Stablecoins like USDT, which are pegged to the USD, help businesses and individuals in countries with volatile currencies protect the value of their assets.

Furthermore, the investment reinforces the trend of blockchain adoption in Africa, fueled by regulatory moves such as Morocco’s draft cryptocurrency law and growing interest from financial institutions.

Evaluation and Conclusion

Tether’s investment in Shiga Digital is a strategic move to tap into the potential of the African financial market, where blockchain and stablecoins are emerging as solutions to traditional financial challenges. By integrating USDT into Shiga Digital’s services, Tether not only promotes financial inclusion but also positions itself as a key player in the continent’s digital transformation. However, the success of this partnership will depend on Shiga Digital’s ability to scale and build trust in local markets.

With growing interest in blockchain in Africa, this is a pivotal moment for Tether and Shiga Digital to shape the region’s financial future. Investors and businesses should keep a close eye on their next moves.

Once again we give our opinion on potential projects in the crypto market. This is not investment advice, consider your portfolio. Disclaimer: The views expressed in this article are solely those of the author and do not represent the platform in any way. This article is not intended to be a guide to making investment decisions.

Compiled and analyzed by HCCVenture

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