Tether has signed a memorandum of understanding (MoU) with the Nairobi Securities Exchange (NSE) to explore the use of blockchain technology in Kenya’s capital markets, including the tokenization of securities and the potential use of USDT for digital settlement.
Under the agreement, the two organisations will collaborate on developing blockchain-based market infrastructure, promoting digital asset education and evaluating the adoption of real-world asset (RWA) tokenization across the country’s financial ecosystem.
Exploring Tokenized Securities
A key focus of the partnership is the possible use of Tether’s Hadron tokenization platform, which enables the issuance, management and trading of tokenized financial assets.
The initiative will assess how blockchain technology can improve the efficiency, accessibility and transparency of capital markets by enabling traditional securities to be issued and traded in tokenized form.
USDT Considered for Settlement Infrastructure
The MoU also includes plans to evaluate instant settlement mechanisms using blockchain technology, with USDT being considered as a potential digital settlement layer where permitted under Kenyan regulations.
If implemented, blockchain-based settlement could significantly reduce transaction times compared with traditional securities settlement systems.
Tokenization Market Continues to Expand
The agreement comes as interest in real-world asset tokenization continues to accelerate globally.
According to industry data, the on-chain value of tokenized real-world assets has grown to approximately $36.8 billion, excluding stablecoins. Meanwhile, stablecoins themselves represent a significantly larger market, with an estimated value of nearly $298 billion.
As the world’s largest stablecoin, USDT currently has a market capitalization of roughly $184 billion, making it one of the most widely used digital assets for payments, trading and blockchain-based settlements.
Strengthening Kenya’s Digital Finance Ecosystem
The partnership reflects growing interest among traditional financial institutions in integrating blockchain technology into existing market infrastructure.
By exploring tokenized securities, digital settlement systems and investor education, Tether and the Nairobi Securities Exchange aim to position Kenya as an emerging hub for digital finance and tokenized capital markets in Africa, while supporting innovation within the country’s evolving regulatory framework.
