Tether‘s Strategic Investment in Kem Signals a Major Step Forward for Digital Finance in the Gulf Region, Aiming to Enhance Financial Inclusion and Stability
Kuwait City, Kuwait – [August 15, 2024] – Kem, the fastest-growing peer-to-peer (P2P) payment app in Kuwait, has secured a $3 million investment from Tether, the world’s largest stablecoin issuer and a leader in the digital asset industry. This landmark deal is poised to accelerate the adoption of USD₮ (Tether’s stablecoin) across the region, aligning with Tether’s mission to expand access to decentralized financial systems.
Seth Sadeq, CEO of Kem, hailed the partnership as one of the most significant developments in the cryptocurrency space. “This collaboration with Tether will bridge access to decentralized financial services, positively impacting the lives of millions. It will empower individuals, especially those in countries experiencing economic challenges, to mitigate the effects of hyperinflation and currency fluctuations,” Sadeq said.
Paolo Ardoino, CEO of Tether, emphasized Tether’s commitment to financial inclusion and stability. “This investment underscores our belief that everyone should have the means to protect their families and businesses against inflation while enjoying unrestricted access to financial services. Our partnership with Kem exemplifies this mission, as their platform simplifies access to the financial system, perfectly aligning with our goal to advance financial freedom for all,” Ardoino stated.
This strategic investment marks Tether’s entry into the Middle Eastern market through an emerging payment service in Kuwait. For Kuwait, the deal signals the country’s growing openness to foreign investments, positioning it to catch up with the foreign direct investment (FDI) performance of its GCC neighbors, such as the UAE and Saudi Arabia.
George Chichua, CFO of Kem, highlighted Tether’s role in fostering a decentralized ecosystem of everyday consumer services. “We believe that Tether’s ecosystem is leading the way towards a more equally distributed world, and Kem is excited to be part of this future,” Chichua remarked. This investment is a critical step in Kem’s mission to transition the Gulf region into a digital cash economy.
The collaboration comes at a pivotal time for Tether, whose 24-hour trading volume recently surpassed that of Bitcoin, Ethereum, Solana, and USDC. In the first half of 2024, Tether announced an impressive $5.2 billion in net profit. Additionally, Tether’s exposure to U.S. Treasuries now surpasses that of major nations, including Germany, the United Arab Emirates, and Australia.
Zane Sadeq, COO of Kem, expressed optimism about the impact of Tether’s investment. “With Tether’s support to introduce USD₮ on the Kem App, we can empower millions of underserved businesses and individuals across the region,” he said.
This partnership is expected to significantly enhance the regional adoption of digital finance, positioning Kem as a leader in the Gulf’s rapidly evolving financial landscape.
