NSE, Tether Explore Blockchain-Based Trading and Digital Assets in Kenya

The Nairobi Securities Exchange (NSE) and Tether have signed a deal to explore the future of digital assets in Kenya. The partnership will examine how blockchain technology and tokenised securities could expand investment opportunities while supporting investor education.

Under a memorandum of understanding (MOU) signed on July 28, Tether.io and the NSE will study the use of tokenised securities, blockchain-powered market infrastructure and digital asset education in the country. The non-binding agreement will test Tether’s Hadron platform, which is designed to issue and manage tokenised assets, including allowing fractional ownership of securities for local and diaspora investors.

The initiative will also explore compliance mechanisms aligned with Kenya’s anti-money laundering and know-your-customer requirements, while assessing options for instant or atomic settlement of transactions.

The parties further plan to discuss the potential use of USDT in settlements where permitted under Kenyan law and conduct training sessions and workshops for stockbrokers and retail investors.

However, the agreement does not authorise the launch of any tokenised asset, trading platform or USDT-based securities settlement system. No implementation timeline, budget, pilot programme or regulatory approval has been announced.

Several issues remain unresolved, including the types of securities that may be tokenised, the blockchain technology to be used, custody of underlying assets and how blockchain records would interact with Kenya’s existing central depository and ownership systems.

The collaboration comes as Kenya strengthens regulation of digital assets through the Virtual Asset Service Providers Act, which took effect on November 4, 2025. The law places tokenisation and token issuance platforms under the oversight of the Capital Markets Authority, while stablecoin issuance falls under the Central Bank of Kenya.

The proposed partnership also aligns with the NSE’s broader technology-driven growth strategy for 2025-2029, which seeks to expand market access and modernise the country’s capital markets through innovation.