Tether to Boost USDT and XAUT Adoption in Zanzibar Amid Africa Strategy

Key insights:

• Tether signed a Memorandum of Understanding (MoU) with the Zanzibar e-Government Authority (eGaz) for advancing digital asset education and financial innovation.
• Tether to integrate USDT and XAUT stablecoins into Zanmalipo payment gateway, improving available options for users.
• The company and government look for effective ways to boost the crypto market in the country beyond peer-to-peer transactions.

Stablecoin issuer Tether continues to deepen its push into Africa as part of its strategy to boost digital asset adoption. As well as to build partnerships in the region. Tether has partnered with Zanzibar e-Government Authority (eGaz). This move is to boost USDT and Tether Gold (XAUT) stablecoins adoption in the country. While also advancing digital asset education and financial innovation.

USDT Issuer Tether Signs MoU with Zanzibar Government

Tether signed a Memorandum of Understanding (MoU) with the Zanzibar e-Government Authority (eGaz), according to an official announcement on July 1.

The MoU aligned with Tether’s strategy to strengthen Africa’s digital economy through education, regulatory clarity, and the development of an innovative ecosystem. The goals of Tether and eGAZ are to improve financial inclusion, local capacity building, and digital assets promotion.

This helps the company build its presence in the region and boost USDT and ZAUT stablecoin adoption. Also, focus on sustainable technology that meets international best practices.

They planned to organize educational workshops for stakeholders across Zanzibar, focusing on blockchain, Bitcoin, stablecoins, and peer-to-peer technologies.

Expand USDT and XAUT Adoption

Tether will also evaluate supporting the integration of USDT and XAUT into Zanmalipo, the local government payment gateway, enhancing accessibility and utility within the regional financial ecosystem.

The move aims to focus on real-world use cases of digital assets and to empower individuals and businesses. Moreover, public and private sector events are planned to raise awareness, facilitate knowledge sharing, and foster entrepreneurship within the blockchain ecosystem.

The company stated that integrating USDT and XAUT into the local wallet could boost financial access and unlock new opportunities for individuals and businesses.

USDT market cap has surpassed $150 billion mark in June, with the value reaching $157.78 billion at the time of writing.

Meanwhile, Tether Gold (XAUT) market cap has jumped past $824 million at the time of writing. The price was up $3,344.40 at the time of writing.

Zanzibar’s Crypto Market and Financial Economy Boost

Zanzibar’s crypto market is still in its early stage, but has shown increasing adoption of digital assets. Especially, market participants have primarily depended on informal peer-to-peer transactions and localized experimentation with digital finance.

Notably, the government’s recent launch of a blockchain sandbox program indicated an intention to foster entrepreneurship, innovation, and regional collaboration in emerging technologies.
“This MOU with the Zanzibar eGovernment Authority reflects our commitment to advancing financial literacy and sustainable blockchain innovation in Africa,” said Paolo Ardoino, CEO of Tether.

The MoU marked a significant milestone as Zanzibar joins other emerging countries to harness the opportunities with the inclusion of digital assets.

Tether’s Growing Presence in Africa

Tether wants to be much more than a stablecoin issuer. It has 100k kiosks in Africa. Tether CEO Paolo Ardoino says the company will keep its main focus outside the U.S., prioritizing growth markets in Asia, Latin America, and Africa.

Recently, the stablecoin issuer announced a strategic investment in Shiga Digital. It is a platform enabling pan-African access to blockchain-based financial solutions.

Shiga Digital offers virtual accounts, OTC services, treasury management, and foreign exchange (FX) services tailored to African enterprises.

Tether is also involved with African governments to regulate and develop policy framework for increasing and simplifying crypto adoption on the continent.

According to data provider Glassnode, $80 billion Tron supply represents over 50% of the USDT circulating supply.

With over half of USDT now residing on Tron, the blockchain is well-positioned to become the dominant stablecoin settlement layer.

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