Nairobi Securities Exchange plc (NSE) has signed a Memorandum of Understanding (MoU) with Tether, the largest company in the digital asset industry, to explore digital asset education, tokenization, and financial market innovation in Nairobi.

Through the collaboration, the NSE and Tether aim to bridge the knowledge gap and equip Kenyan investors with the skills and confidence to participate in the evolving digital economy. The partnership will deliver a structured investor education programme that includes training sessions, workshops, and other knowledge-sharing initiatives for NSE-listed brokers and retail investors, with the goal of deepening understanding of digital assets and promoting greater participation in Kenya’s capital markets.

The MoU also seeks to support the development and implementation of a blockchain-based market infrastructure for the tokenization and instant settlement of securities on the NSE using Distributed Ledger Technology (DLT). It will also enable fractionalized access to securities for both local and diaspora investors through the Hadron platform. Tether and the NSE will additionally design and pilot secure onboarding solutions tailored to the Kenyan regulatory environment to streamline Anti-Money Laundering (AML) and Know Your Customer (KYC) processes.

Another focus area is the potential development of Real-World Asset (RWA) tokenization, leveraging the Hadron platform’s capabilities to support the issuance and trading of tokenized securities and other financial instruments. The scope of the agreement places education alongside infrastructure work, reflecting how exchanges and digital asset firms are increasingly pairing market access initiatives with technical experimentation as they look to align new tools with existing compliance requirements.

To improve market efficiency and post-trade processes, Tether will support the exploration of instant and atomic settlement mechanisms aimed at reducing the current settlement cycle. The two parties will also assess the feasibility of integrating USDT as a potential digital settlement infrastructure layer to enhance market liquidity and attract greater capital flows, where permitted by law.

“The use cases for digital assets are gradually evolving, from crypto use cases to real-life applications and, ultimately, to cross-border institutional use cases. This is what true freedom means, and we are happy to collaborate with the Nairobi Securities Exchange even further to promote practical institutional use cases and technological advancement to optimize operations and enable efficient, transparent, accountable, and sustainable processes in the stock exchange while ensuring data protection and privacy,” said Paolo Ardoino, CEO of Tether.

“This partnership 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. 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. 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,” said Frank Mwiti, Chief Executive Officer, NSE.