This funding is considered an important step in advancing digital financial services within the Gulf region. The investment will be used to promote the adoption of USD₮, a digital currency designed to simplify access to digital financial systems across the region. This move aligns with Tether’s broader goal of improving financial accessibility and supports Kem’s role in offering real-time payment solutions.
Kem has gained attention for its focus on real-time payment services, which are seen as vital for economic stability in the Gulf according to fintech.global. The platform aims to provide efficient, decentralised financial services, which can be particularly beneficial in areas affected by economic challenges such as hyperinflation and currency instability.
The funds from Tether will help Kem enhance its services and expand its reach across the Middle East. This investment reflects Kuwait's growing openness to foreign investment and is indicative of a wider regional shift towards digital economic frameworks, similar to trends observed in other Gulf Cooperation Council (GCC) countries such as the UAE and Saudi Arabia.
Beyond financial transactions, the partnership between Kem and Tether is part of a broader strategy to develop a decentralised ecosystem that improves access to essential financial services. Kem officials highlighted the importance of the partnership, stating that the collaboration with Tether is a critical development in the cryptocurrency industry. They noted that this alliance would facilitate better access to decentralised financial services, particularly for people in economically distressed regions, helping them mitigate the impacts of hyperinflation and currency fluctuations.
In June 2024, Tether launched Alloy by Tether, a tethered asset backed by Tether Gold, developed by Moon Gold NA, S.A. de C.V. and Moon Gold El Salvador, S.A. de C.V. The product aimed to redefine stability in the digital economy by combining the strengths of a stable unit of account with the security and reliability of gold.
In essence, Alloy by Tether introduced a novel category of digital assets known as tethered assets, designed to track the price of reference assets through stabilisation strategies like over-collateralisation with liquid assets and secondary market liquidity pools. This approach provided consistent value and stability between the reference asset and its tethered counterpart.
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