Tether Partners with Zanzibar to Promote Stablecoin Adoption and Blockchain Training

Key Takeaways:

• Tether signs strategic MoU with Zanzibar’s e-Government Authority to boost crypto literacy and stablecoin usage.
• Plans include possible integration of USD₮ and XAU₮ into government payment gateway Zanmalipo.
• Workshops, academic partnerships, and infrastructure support aim to transform Zanzibar’s digital economy.

As crypto adoption grows in emerging markets, stablecoin giant Tether is stepping into Africa with a formal agreement aimed at education, innovation, and real-world use cases. In a significant move, Tether has partnered with the Zanzibar e-Government Authority (eGAZ), positioning the island region as a potential future hub for digital asset activity.

Tether Targets Zanzibar to Pioneer Africa’s Digital Economy Shift

Tether, issuer of the world’s largest stablecoin USD₮, has recently announced the signing of a Memorandum of Understanding (MoU) with Zanzibar’s e-Government Authority (eGAZ). The deal is set to change the face of financial inclusion, secure digital infrastructure, and blockchain knowledge in the East African archipelago.

For all that the continent has been regarded as low-hanging fruit for fintech innovation, real crypto integration has been a much patchier affair. Tether’s relocation also reflects a trend in the broader industry: going after underserved markets where mobile penetration is high and traditional banking is scarce.

“This is about turning informal curiosity into structured growth,” said Paolo Ardoino, CEO of Tether, emphasizing the shift from theoretical discussions to practical deployment.

Read More: Oduwa Coin: The Digital Cash Of Africa

USD₮ and XAU₮: Tether’s Real-World Stablecoin Play

Central to the MoU is Tether’s exploratory interest in integrating its stablecoins, USD₮ and XAU₮, into Zanzibar’s digital payment system, Zanmalipo. Both USD₮, tracking the U.S. dollar, and XAU₮, which is supported by physical gold, could offer a potentially more secure savings, crossborder payments and day-to-day commerce option in a region with a long history of currency instability and limited access to banking systems that use the U.S. dollar.

The eGAZ operated Zanmalipo is a payment channel for multiple government services. If the integration goes ahead, it would represent one of the first publicly known public sector payment gateways accepting stablecoins as a payment method in Sub-Saharan Africa.

That’s part of Tether’s broader global push to increase real-world use of its tokens. Similar hybrid public-private models have been explored in Latin America and Southeast Asia.

Crypto Education: Core of the MoU

Building Knowledge Before Infrastructure

At the heart of the Tether-Zanzibar collaboration is learning. According to the MoU, efforts will be made by both entities to host workshops and seminars on blockchain technology, peer-to-peer networks, Bitcoin basics and stablecoin mechanics for local actors – such as policymakers, students and small business owners.

Tether and eGAZ are also considering collaborations with local universities and research centers to integrate blockchain curricula into mainstream education. This bottom-up academic integration could replicate what we have seen in countries such as Nigeria and Kenya, where university-based blockchain programs have helped create developer ecosystems and early-stage startups.

“We believe education is the bridge to adoption,” said Ardoino, “and it’s the only way to ensure responsible and long-term integration of these technologies.”

Read More: Ripple and Chipper Cash Join Forces to Elevate Cross-Border Payments in Africa

A Sandbox for Innovation in the Indian Ocean

Zanzibar’s openness to crypto innovation has been growing. In recent months, the government launched a blockchain sandbox program, signaling a willingness to work with the private sector on emerging technologies under regulated test environments.

The Tether partnership is seen as a potential anchor initiative within this sandbox, with stablecoin testing and real-world deployment possibilities under government oversight.

Local officials have also indicated a broader ambition to reduce dependency on cash-based systems and leapfrog into a digitally inclusive financial framework. According to Said Seif Said, Director General of eGAZ, “Tether gives us the tools and guidance to modernize our economy while remaining globally compliant.”

Why Africa—and Why Now?

While North America and Europe wrestle with heavy regulation, Africa’s fragmented but fast-evolving fintech landscape offers a unique opportunity for crypto firms. Mobile penetration across East Africa is above 80%, but formal financial inclusion remains uneven. Plenty of rural areas are not part of the formal banking system and depend heavily on informal savings schemes or mobile money networks such as M-Pesa in nearby Kenya.

Stablecoins like USD₮, offering low-volatility, dollar-pegged instruments accessible via smartphones, could play a vital role in bridging that gap.

Tether’s move to Zanzibar also serves to illustrate a wider strategy of “crypto-diplomacy” — seeking out alliances with governments to help shape policy-making, develop sandboxes and grow ecosystems for the longer term rather than launching unregulated, consumer-facing apps.

This was as rivals like Circle and Celo Foundation also expand reach in developing markets. Still, Tether continues to be the big dog by the numbers: USD₮ is circulating north of $110 billion globally since June 2025.

Risks and Challenges Ahead

Despite the optimism, challenges remain. Zanzibar is semiautonomous, but its regulatory and financial systems are closely intertwined with the larger Tanzanian government. The success of this initiative might hinge on greater regional cooperation and legal alignment.

Additionally, volatile crypto markets, past controversies involving Tether’s reserves, and infrastructure limitations — including limited high-speed internet coverage — could slow adoption if not adequately addressed.

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