- Tether and the Nairobi Securities Exchange partnered to explore tokenized securities, blockchain infrastructure, and broader digital asset market development.
- The collaboration includes investor education, regulatory onboarding, fractional securities access, and blockchain settlement systems designed to improve market efficiency.
- Tether and the exchange will evaluate real-world asset tokenization, USD₮ settlement infrastructure, and compliance-focused financial market modernization opportunities.
Tether has partnered with the Nairobi Securities Exchange to explore tokenized securities and blockchain-based market infrastructure in Kenya. The agreement also covers digital asset education, faster securities settlement, and wider investor access through distributed ledger technology.
According to the memorandum of understanding, the Nairobi Securities Exchange plans to modernize its capital markets with blockchain technology while both organizations assess systems that improve trading efficiency and expand investment opportunities for local and diaspora investors.
Under the agreement, Tether and the exchange will examine how distributed ledger technology can support the issuance and trading of tokenized securities. They also plan to evaluate infrastructure that enables instant settlement, reducing reliance on traditional post-trade processes. Consequently, the initiative could improve market efficiency while strengthening access to digital financial services.
Additionally, both organizations will introduce investor education programs through workshops, training sessions, and structured learning initiatives. The program targets brokers, retail investors, and other market participants seeking a better understanding of digital assets and modern capital markets.
Partnership explores blockchain infrastructure for Kenya’s capital markets
A key objective of the partnership involves using Tether’s Hadron platform to support tokenized securities and fractional investment opportunities. This approach could allow more local and international investors to access listed financial products through digital infrastructure.
Besides expanding investment access, both parties will develop onboarding systems tailored to Kenya’s regulatory requirements. These systems aim to simplify Anti-Money Laundering and Know Your Customer procedures while maintaining compliance with financial regulations.
The memorandum also includes plans to evaluate real-world asset tokenization and blockchain-based settlement mechanisms. If implemented, those systems could replace the exchange’s existing three-stage settlement process with faster transactions. Furthermore, both organizations will examine whether USD₮ could serve as a digital settlement layer where regulations permit.
Tether Chief Executive Officer Paolo Ardoino stated that digital assets are expanding beyond cryptocurrency trading into cross-border institutional finance. He added that the partnership seeks to improve efficiency while promoting transparency, accountability, privacy, and secure data management.
Meanwhile, Nairobi Securities Exchange Chief Executive Officer Frank Mwiti stated that the collaboration aligns with the exchange’s 2025 to 2029 strategic plan. He explained that the initiative will evaluate technologies that modernize market infrastructure, improve operational efficiency, and expand investment opportunities while maintaining regulatory compliance.
Conclusion
The memorandum establishes a framework for both organizations to evaluate tokenized securities and blockchain infrastructure across Kenya’s capital markets. The proposed initiatives could improve settlement efficiency, expand investor participation, and support the exchange’s long-term digital transformation.
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