The Nairobi Securities Exchange (NSE) and digital asset firm Tether have signed a memorandum of understanding to explore asset tokenization, blockchain-based settlements, and investor education within Kenya's financial market.
The partnership aims to modernize Kenya's capital market infrastructure using Distributed Ledger Technology (DLT). Under the agreement, both organizations plan to test mechanisms for instant settlements and fractional securities trading through Hadron — Tether's asset tokenization platform, intended for both local and diaspora investors.
The Tether agreement comes amid broader efforts by the exchange to integrate digital assets into its trading ecosystem. In 2024, the exchange signed a memorandum of understanding with exchange-traded product issuers Valour Inc. and Sovfi Inc. to facilitate the creation, issuance, and trading of exchange-traded products (ETPs) based on digital assets. The goal of this collaboration was to introduce new financial products and list Valour's ETPs on the Nairobi bourse, aiming to broaden the investor base and increase liquidity.
As part of the agreement with Tether, the initiative will also focus on streamlining Anti-Money Laundering (AML) and Know Your Customer (KYC) processes tailored to Kenya's regulatory environment. Additionally, both parties plan to assess the feasibility of using USDT as a digital settlement layer to enhance liquidity.
To promote product adoption among retail and institutional investors, Tether and the exchange will launch structured knowledge transfer programs, including workshops and training sessions for brokers registered on the NSE and retail investor groups.
"The use cases of digital assets are evolving: from cryptocurrencies to real applications and ultimately to cross-border institutional finance," stated Tether CEO Paolo Ardoino. "Our goal is to optimize operations and ensure efficient, transparent, accountable, and sustainable processes while protecting data and privacy."
This collaboration aligns with the exchange's 2025–2029 strategic plan, which aims to expand market access and modernize trading infrastructure.
"By collaborating with Tether, we are exploring innovative technologies that can modernize market infrastructure, enhance operational efficiency, and broaden investor access, all while maintaining the highest standards of market integrity and regulatory compliance," said Frank Mwiti, CEO of the Exchange.
Founded in 1954, the NSE is one of Africa's leading financial markets with a market capitalization of approximately $26.4 billion. The exchange provides platforms for trading equities, debt securities, and derivatives, and is a member of the Futures Markets Association and a partner exchange under the United Nations-led Sustainable Stock Exchanges Initiative.
