Zanzibar has taken a formal step toward blockchain integration and digital asset education through a new partnership with Tether, a leading issuer of digital stablecoins, as the two parties signed a Memorandum of Understanding (MoU) aimed at developing blockchain-based financial solutions, enhancing digital literacy, and modernizing local financial systems.
- •The MoU outlines plans to promote digital asset literacy, support regulatory development, and encourage adoption of stablecoins for real-world financial applications.
- •As part of the partnership, Tether will explore integrating its USD₮ and gold-backed XAU₮ tokens into Zanmalipo, Zanzibar’s government-run payment platform.
- •The agreement marks a growing trend where African governments are turning to private sector expertise to develop legacy infrastructure for emerging technologies.
“By combining clarity with educational investment and digital asset integration, we will be laying the foundation for a compliant, scalable, and inclusive digital economy. By working together, we hope to create a digital economy that leverages the power of blockchain to improve lives and support economic development across Zanzibar,” Paolo Ardoino, CEO of Tether said.
If successful, the move could expand access to stable financial instruments and diversify payment options for citizens and businesses operating outside formal banking systems. Zanzibar’s efforts to modernize its economy through blockchain have accelerated in recent months. The government recently introduced a regulatory sandbox to test blockchain applications, signaling a more open stance toward decentralized finance and emerging technologies.
Although the island’s crypto market remains in its infancy, informal peer-to-peer usage and local experimentation have laid groundwork for formal adoption. The collaboration could also help foster entrepreneurship by enabling cross-border payments, savings mechanisms outside traditional banking, and financial services for underserved populations.
“This MOU with Tether provides us access to the future as we could leverage on Tether’s support in enabling public participation, digital assets education, and catalysing legal and institutional reforms towards inclusion,” Said Seif Said, Director General, Zanzibar’s e-government authority, said.
Tether’s partnership with Zanzibar is the latest in a series of strategic engagements across emerging markets. The company has been expanding its footprint in Africa, including recent investments in digital financial platforms and asset-backed financial infrastructure.