Terrill Dicki
Aug 14, 2024 01:57
Tether invests $3 million in Kem to boost financial inclusion and USD₮ adoption in the Middle East, targeting improved economic conditions and access to financial services.
Tether Operations Limited, the leading company in the digital asset industry, has announced a $3 million strategic investment in the Kem app, a platform focusing on money transfers and financial management. This initiative will introduce Tether’s stablecoin, USD₮, to Kem’s platform, aiming to drive widespread cryptocurrency adoption across the Middle East, according to tether.io.
Expanding Financial Access in MENA
The Middle East and North Africa (MENA) region is recognized as the sixth largest crypto economy globally, with an estimated $389.8 billion in on-chain value received between July 2022 and June 2023. This accounts for nearly 7.2% of the global transaction volume during the same period. Countries like Dubai and Abu Dhabi are already focusing on cryptocurrency and blockchain regulation, highlighting the region’s growing importance in the digital economy.
The integration of USD₮ on Kem’s platform aims to enhance economic conditions in neighboring countries such as Kuwait, Bahrain, Saudi Arabia, Qatar, and Iraq. Millions of expatriates in these regions are expected to benefit from using USD₮, providing a hedge against hyperinflation and economic instability.
Benefits for the GCC Region
This investment will facilitate easier access to USD₮ for residents of the Gulf Cooperation Council (GCC) countries, leveraging established consumer financial platforms like Kem. Known for its seamless cross-border transactions, Kem app will now support Tether’s stablecoin, reinforcing Tether’s commitment to global financial inclusion.
According to Paolo Ardoino, CEO of Tether, “This investment reinforces Tether’s commitment to promoting financial inclusion and stability. We believe that everyone should have the means to protect their families and businesses against inflation while enjoying unrestricted access to financial services. Our investment in Kem App is a testament to this belief, as the platform provides tools that simplify access to the financial system, perfectly aligning with our mission to advance financial freedom for all.”
Strategic Initiatives and Future Plans
Tether continues to work towards a decentralized ecosystem that encompasses everyday consumer services. The company has been involved in various projects such as Pear Credit, a transparent accounting system leveraging peer-to-peer technology, and HolePunch, a platform for peer-to-peer applications. Tether also invested in generative AI cloud platforms, showcasing its commitment to technological advancements.
This collaboration allows Kem to enhance its offerings, aiming to serve millions of underserved businesses throughout the Middle East. By incorporating cryptocurrencies into its platform, Kem seeks to replicate the success of financial platforms offering cryptocurrencies in other markets, thereby driving mass adoption and fostering a more inclusive banking landscape in the Gulf region.
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