Stablecoins have solidified its stance as a blockchain finance solution, accounting for 43% of Africa’s total crypto transaction volume.
In Brief
- Tether and Shiga Digital’s stablecoin integration shields African businesses from currency devaluation while streamlining cross-border payments.
- Shiga’s automated treasury tools and USDT liquidity reduce remittance costs by 70%, empowering SMEs and freelancers.
- Regulatory shifts in Morocco, Nigeria, and Kenya validate blockchain finance solutions as a scalable alternative to legacy systems.
As a result, Tether has reaffirmed its initiatives to expand its reach throughout Africa by recently partnering up with Shiga Digital, a pan-African blockchain platform.
In an attempt to rewrite Africa’s economic narrative, let’s dive into how this partnership adds a layer of digital asset adoption on the continent.
Africa’s Financial Crossroads: Barriers and Breakthroughs
As per the official announcements, Tether seeks to promote financial freedom by providing Africans with the necessary tools required to access the global market.
Tether will enable seamless blockchain-based financial infrastructure powered by USD-supporting treasury and FX management for legacy industries.
Currently, African enterprises cannot enjoy the lucrative markets of cryptocurrency like Blackrock or Strategy due to persistent hurdles like volatile local currencies, fragmented cross-border payment systems, and limited access to global liquidity.
Fortunately, there has been a significant process with many nations now shifting to accommodate digital assets rather than reject them.
Morocco recently prepared a draft for cryptocurrency regulations showcasing a ripple effect, with Nigeria, Kenya, and Tanzania following suit.
Shiga Digital, founded in 2021 and headquartered in Abu Dhabi—operates with a lean, agile team of 2–10 specialists. Their mission? To build the foundational layer for Africa’s on-chain economy.
As Abiola Shogbeni, CEO of Shiga Digital, states:
“We envision a world where internet-native money dominates financial landscapes. Stablecoins pegged to stable assets like the U.S. dollar will become essential for everyday transactions.”
The Mechanics of Transformation: Shiga’s Blockchain Toolbox
Shiga Digital’s platform integrates decentralized finance (DeFi) with user-friendly interfaces, making advanced blockchain finance solutions accessible even to non-technical users.
The platform enabled users to open virtual accounts for crypto, allowing businesses to create multi-currency accounts (supporting NGN, USD, EUR, and more).
Shiga’s automated treasury tools and USDT liquidity reduce remittance costs by 70%, empowering SMEs and freelancers. [Photo: Shiga]
CHECK OUT”:Base by Coinbase: Accelerate dApps and Stablecoin Remittances in Africa
In addition, the platform offers self-custodial wallets, giving users full control over their assets while incorporating zero-knowledge-proof privacy to maintain security.
A core-plus Shiga offers automated treasury workflows streamlining complex processes like liquidity management and FX conversions.
Consider a Nigerian business converting ₦5,000,000 monthly to USDT. While peers lost 39% of value to currency devaluation in two years, this company preserved $103,000 in assets—showcasing blockchain treasury management in action.
Driving Stablecoin Adoption as an Economic Shield
One of the core pillars of the Tether-Shiga Digital partnership is stablecoin adoption, which has become a necessity in Africa’s digital sector.
The incorporation of USDT enables Shiga users to hedge against current fluctuations, streamline cross-border transactions, and success global liquidity.
Tether’s investment accelerates Shiga’s capacity to embed stablecoins into daily operations—from payroll to supplier payments.
Paolo Ardoino, CEO of Tether, underscores this:
“Stablecoins are the heartbeat of financial transformation. By collaborating with innovators like Shiga Digital, we aim to deliver financial access and efficiency to African enterprises. Together, we are not just imagining a future powered by blockchain technology; we are building it.”
This synergy enhances digital asset adoption across numerous sectors like Oil and gas firms.
While utilizing Shiga for cross-border crypto payments, it bypasses slow correspondent banking services.
Freelancers, accounting for a huge portion of Africa’s youth population, can now access instant payments with USDT and low remittance fees.
Enterprise Liquidity Reimagined
At its core, this partnership redefines USDT for enterprise liquidity. Shiga’s infrastructure lets businesses:
Essentially, with Tether, Shiga aims to redefine USDT for enterprise liquidity via its robust tools.
The platform eliminated the need for an off-ramp into local countries, enabling users to transact directly with USDT.
In addition, it optimizes cash flow through real-time FX services and ITC trading desks.
One logistics company in Kenya reduced its cross-border payment costs by 70% while cutting transaction times from days to minutes. Such efficiency exemplifies how blockchain finance solutions create competitive advantages.
A Blueprint for Inclusive Finance
Tether’s goal is simple: to enable financial freedom via the efficiency and reliance on USDT, while Shiga Digital aims to architect a financial ecosystem where access isn’t determined by geography or legacy infrastructure.
Both organizations aim to shift African enterprises into a blockchain ecosystem, showcasing how this partnership aims to overhaul stablecoin adoption.
It transcends theoretical promise to solve real-world crises—currency instability, payment friction, and financial exclusion.
With Africa’s regulatory stance evolving with more nations embracing digital assets, it also offers a replicable template.
CHECK OUT:Stablecoins in Hyperinflationary Markets: A Survival Guide for African Entrepreneurs
By demonstrating how stablecoins, when integrated into intuitive platforms, become tools fostering more efficiency via speed and global access.
For enterprises navigating volatility or freelancers seeking fair access to global opportunities, the message is clear: the future of African finance is being built on-chain—and it’s arriving faster than anyone predicted.
