Tether Operations Limited has made a significant strategic move by committing $3 million to expand its USDT stablecoin across the Middle East through a partnership with Kem, a financial management app dedicated to enhancing financial inclusion in the region. This investment underscores Tether’s broader mission to provide more accessible financial services to both residents and expatriates in the Middle East, a region that is rapidly becoming a hub for digital currency adoption.
The partnership between Tether and Kem aims to integrate Tether’s USDT stablecoin into Kem’s platform, thereby facilitating a broader adoption of digital currencies across the Middle East. This region, particularly the Middle East and North Africa (MENA), has emerged as the sixth-largest crypto economy in the world, with a remarkable $389.8 billion in on-chain transaction value recorded between July 2022 and June 2023.
Tether’s investment is specifically targeted at countries such as Kuwait, Bahrain, Saudi Arabia, Qatar, and Iraq. The company envisions that this initiative will offer a more stable and accessible financial ecosystem, particularly for expatriates and residents in these nations who often face challenges related to hyperinflation and economic instability.
Paolo Ardoino, CEO of Tether, emphasized the importance of this initiative, stating, “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.”
This strategic investment by Tether is expected to significantly expand the reach of digital assets in the Gulf region, promoting a more inclusive financial landscape and supporting underserved businesses.
In another notable development, BitGo, the fifth and final cryptocurrency exchange working with the Mt. Gox Trustee, has made significant on-chain Bitcoin transactions ahead of anticipated creditor repayments. According to data from Arkham, Bitcoin worth approximately $2 billion was moved on August 12, marking a critical step towards reimbursing Mt. Gox’s creditors.
This move by BitGo follows an earlier test transaction, a common practice in the Web3 space to ensure the accuracy of the destination wallet and prevent potential loss of assets. The transfer of BTC is likely the last step before users of the now-defunct exchange receive updated Bitcoin balances. Other exchanges like Kraken and Bitstamp have undergone similar processes during the distribution of funds to creditors.
To date, Mt. Gox has settled less than $6 billion in user reimbursements, with plans to repay a total of $9 billion in cryptocurrency following multiple hacks between 2011 and 2014. As per crypto.news, approximately 20,000 creditors are expected to receive Bitcoin and other cryptocurrencies in the coming weeks, with a Tokyo bankruptcy court setting October 2024 as the deadline for the Trustee to complete the repayment plan.
With more than $3 billion in BTC still held by Mt. Gox, further repayments are anticipated. These disbursements could potentially lead to increased volatility in the cryptocurrency market, with possible selloffs by users influencing short-term Bitcoin price swings. As of now, Bitcoin is trading at $59,500, experiencing a slight decline of less than 1%, while the broader digital asset market has dropped to $2.18 trillion.
Meanwhile, Coinbase, the largest publicly traded cryptocurrency exchange in the U.S., has expanded its operations to Hawaii following regulatory changes by the state’s Department of Commerce and Consumer Affairs Division of Financial Institutions. Hawaiian residents can now buy, sell, and manage cryptocurrencies via Coinbase’s platform, which offers a range of services including staking, price tracking, and international asset transfers.
This expansion marks a significant milestone for Coinbase, which had previously been unavailable in Hawaii due to regulatory constraints. Now, residents can earn up to 12% annual percentage yield (APY) on select assets and up to 5.20% in rewards by holding USDC, reflecting the growing accessibility of cryptocurrency services in the U.S.
