Kenya’s Stock Market is Using Tether to Test Blockchain’s Promise

Stablecoin issuer Tether has signed a memorandum of understanding with the Nairobi Securities Exchange (NSE) to explore blockchain technology, tokenized securities and digital asset education, as Kenya moves to position itself as a regulated hub for virtual assets in Africa.

The partnership comes as Kenya rolls out its first comprehensive legal framework for digital assets. The Virtual Asset Service Providers (VASP) Act, which took effect in late 2025, established licensing requirements for cryptocurrency exchanges, wallet providers, stablecoin issuers and tokenization firms. Regulators this month eased some of the proposed capital requirements for crypto businesses following industry lobbying, while introducing stricter safeguards to prevent speculation in operating licences.

Under the agreement, Tether and the NSE will examine how distributed ledger technology (DLT) could modernize the exchange’s market infrastructure, including through tokenized securities, faster settlement of trades and fractional ownership of listed assets.

The companies also plan to develop investor education programmes, including training sessions and workshops for stockbrokers and retail investors on digital assets and capital markets.

The memorandum envisions exploring blockchain infrastructure that would allow securities to be issued and settled using Tether’s Hadron tokenization platform. The parties will also study the feasibility of real-world asset tokenization and assess whether Tether’s U.S. dollar-pegged stablecoin, USD₮, could serve as part of a digital settlement layer where regulators permit.

They also plan to pilot onboarding systems tailored to Kenya’s regulatory requirements for anti-money laundering (AML) and know-your-customer (KYC) compliance.

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

“This is what true freedom means,” he said.

“We’re glad to deepen our collaboration with the Nairobi Securities Exchange to advance practical institutional adoption and technological progress,” Ardoino added.

“Our goal is to streamline operations and enable efficient, transparent, accountable, and sustainable processes, while protecting data and privacy.”

The NSE said the partnership supports its strategy to modernize Kenya’s capital markets through technology while remaining aligned with regulatory requirements.

“This MoU is fully aligned with the NSE’s 2025-2029 Strategic Plan, which is anchored on leveraging technology, deepening market participation, and expanding access to investment opportunities for all investors,” NSE Chief Executive Frank Mwiti said.

“By collaborating with Tether, we are exploring innovative technologies that have the potential to modernize market infrastructure, enhance operational efficiency, and broaden investor access while maintaining the highest standards of market integrity and regulatory compliance,” he said.

“As we execute our strategy, partnerships such as this will play a critical role in positioning the NSE as a globally competitive exchange and a catalyst for Kenya’s economic growth.”

The NSE, established in 1954, has a market capitalization of about $26.4 billion and is among Africa’s leading stock exchanges.

The agreement is non-binding and any deployment of tokenized securities or digital settlement infrastructure would require regulatory approvals.

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