Kenya’s Nairobi Securities Exchange (NSE) and Tether are moving to explore how digital assets, blockchain technology and tokenization could reshape the country’s capital markets.

The companies have signed a Memorandum of Understanding (MoU) covering digital asset education, tokenized securities, financial market infrastructure and more efficient settlement systems in Nairobi.

NSE, Tether target digital asset education

A major part of the partnership is an investor education program designed to close knowledge gaps around digital assets and modern capital markets.

Tether and NSE plan to organize training sessions, workshops and other structured learning initiatives for NSE-listed brokers and retail investor groups. The goal is to increase awareness and participation in capital markets while helping investors understand digital assets.

The partnership will also examine blockchain-based infrastructure for tokenization and instant settlement of securities using distributed ledger technology. Through Tether’s Hadron platform, the companies will explore fractionalized access to securities for local and diaspora investors.

Tokenization and faster settlement

Another focus is real-world asset (RWA) tokenization, including the potential issuance and trading of tokenized securities and other financial instruments through Hadron.

NSE and Tether will also design and pilot onboarding processes suited to Kenya’s regulatory environment, with a focus on Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements.

Tether aims to support instant and atomic settlement mechanisms that could reduce NSE’s existing three-level settlement cycle. The companies will also assess whether USD₮ could serve as a digital settlement infrastructure layer to improve liquidity and attract capital flows where permitted by regulation.

“The use cases for digital assets are evolving, from crypto into real-life applications and, ultimately, cross-border institutional finance,” said Paolo Ardoino, CEO of Tether.

Frank Mwiti, CEO of NSE, said the agreement aligns with the exchange’s 2025-2029 Strategic Plan, which focuses on technology, broader market participation and greater investment access.

NSE and Tether bring established platforms

Established in 1954, NSE is one of Africa’s leading exchanges, providing markets for equities, debt securities and derivatives. With a market capitalization of about $30.4 billion, it supports savings, investment and access to capital for Kenyan and international companies.

NSE is a member of the Association of Futures Markets and a partner exchange in the United Nations-led Sustainable Stock Exchanges initiative.

Tether, founded by Bitcoin enthusiasts and early adopters, launched Tether in 2014 as a blockchain-enabled platform for the digital use of traditional currencies. The company has positioned its technology as infrastructure for cross-border financial services.

The NSE-Tether partnership could give Kenya a new test case for how digital assets and tokenized securities can connect traditional capital markets with blockchain-based financial infrastructure.