Tether And Shiga Build Self-Custodial USDT, Bitcoin And Gold Products For Africa
Tether is expanding its footprint in Africa by partnering with Shiga to launch self-custodial financial products that support USDT, Bitcoin, and Tether Gold. This initiative aims to empower users and institutions in regions with limited access to traditional banking services, potentially reshaping the landscape of digital asset management in the continent.
Understanding Tether and Self-Custodial Wallets
Tether is a company that creates a type of digital money called stablecoins, which are designed to maintain a stable value, often pegged to traditional currencies like the U.S. dollar. One of Tether's most well-known stablecoins is USDT, which allows users to transact in a digital format without the volatility typically associated with cryptocurrencies like Bitcoin.
In a recent announcement, Tether revealed a partnership with a company called Shiga to develop self-custodial wallets. A self-custodial wallet is a digital wallet where users have complete control over their private keys—the secret codes that allow access to their funds. This means that users can manage their assets directly without relying on a third party, like a bank or a centralized exchange, to hold their money.
The Need for Digital Financial Solutions in Africa
Africa has been identified as a significant market for digital financial services due to various economic challenges. For instance, the cost of sending money across borders in Sub-Saharan Africa can be quite high, averaging around 8.46% in 2025, according to World Bank data. This high cost often discourages people from using traditional banking methods for remittances, which are essential for many families.
By introducing self-custodial wallets, Tether and Shiga aim to reduce these costs and provide easier access to digital assets. Users will be able to fund their wallets using local currencies, U.S. dollars, or Bitcoin, allowing them to hold and transfer not just USDT but also Bitcoin and Tether Gold (XAUT), a digital representation of gold. This variety gives users more options in managing their wealth and conducting transactions.
How Tether and Shiga's Collaboration Works
The collaboration between Tether and Shiga is not just about creating a wallet; it involves building a comprehensive financial ecosystem. The self-custodial wallets will utilize Tether's open-source Wallet Development Kit (WDK), which is a set of tools that developers can use to create their own digital wallet applications. This approach allows local companies and financial institutions to build customized solutions tailored to their specific needs and user bases.