Tether partners with HoneyCoin to broaden USDT reach across African markets

The move comes as demand for stablecoins continues to outpace that for native cryptocurrencies in regions where fiat currency volatility and limited banking services pose everyday challenges. According to the World Bank, roughly 57 % of Africa’s adult population remains unbanked, a gap that digital assets have begun to narrow. Tether, the world’s largest issuer of a fiat‑backed token, has already rolled out USDT on several African exchanges, but the partnership with HoneyCoin is expected to deepen on‑ramps by leveraging the startup’s existing network of point‑of‑sale (POS) terminals, mobile money wallets, and merchant aggregators.

HoneyCoin, founded in 2021, positions itself as a “bridge” between blockchain and everyday commerce, offering APIs that allow retailers to accept crypto payments alongside cash and mobile money. By embedding USDT into its suite of services, HoneyCoin will enable instant settlement in a stable, globally recognized currency, mitigating the price‑risk that typically deters merchants from accepting volatile tokens like Bitcoin or Ethereum. The partnership also includes a joint effort to educate small‑business owners on regulatory compliance, a critical step given the varied legal frameworks governing digital assets across African jurisdictions.

Industry analysts see the collaboration as part of a broader trend of stablecoin providers seeking localized partnerships to navigate regulatory landscapes and build trust. “Tether’s approach mirrors what we’ve observed with other stablecoin issuers—team up with home‑grown fintechs that already have the relationships and compliance know‑how on the ground,” said a senior research analyst at Blockchain Capital. “For HoneyCoin, aligning with a globally recognized token like USDT adds credibility and opens new revenue streams through transaction fees.”

The partnership also aligns with recent policy shifts. In 2024, Nigeria’s central bank clarified its stance on stablecoins, allowing regulated entities to offer services that facilitate cross‑border payments, while Kenya’s Capital Markets Authority introduced a sandbox for crypto‑related innovations. By positioning USDT within HoneyCoin’s ecosystem, Tether hopes to capture a share of the projected $12 billion African crypto market by 2026, according to a report by PwC.

While the exact financial terms of the deal were not disclosed, both parties indicated that the collaboration will initially focus on pilot programs in Kenya, Nigeria, Ghana, and South Africa, with plans to scale to additional markets based on user adoption and regulatory clearance. Tether’s CEO, Giancarlo Devasini, highlighted that the partnership “reinforces our commitment to delivering a reliable, dollar‑stable digital asset to underserved economies, fostering financial inclusion and cross‑border commerce.”

As the partnership rolls out, market participants will watch closely to gauge how effectively USDT can be woven into Africa’s burgeoning digital payment landscape and whether the model can be replicated in other emerging markets.