Kenya is set to become a continental leader in digital asset trading with the launch of the Kenya Digital Exchange (KDX), a fully regulated tokenization platform developed through a strategic partnership between:

  • DeFi Technologies

  • SovFi Inc.

  • Valour Inc., and

  • The Nairobi Securities Exchange PLC (NSE)

This announcement follows a previously announced landmark Memorandum of Understanding (MOU) signed by Valour, the Nairobi Securities Exchange (NSE), and SovFi. The agreement is intended to support the development, issuance, and trading of digital asset exchange-traded products (ETPs) in Kenya and other markets, drawing on Valour’s and DeFi Technologies’ digital asset expertise and SovFi’s tailored financial solutions.

[TECH] EAST AFRICA | Nairobi Securities Exchange (NSE) Signs MoU to Introduce Digital Asset ETPs in Collaboration with Valour and SovFi: Kenya’s Nairobi Securities Exchange (NSE) has signed a memorandum of u.. https://t.co/dhVJa5jvFi via @BitcoinKE

— Top Kenyan Blogs (@Blogs_Kenya) August 8, 2024

According to a press release, the launch will take place in a phased rollout. It is scheduled for full implementation by Q2 2026 enabling primary issuance and trading of tokenized real-world assets such as equities, debt, and commodities.

The project also includes Valour’s exchange-traded products which are expected to be listed on the NSE before Q3 2025 ends.

Backed by the Capital Markets Authority of Kenya, the KDX initiative combines blockchain-based infrastructure with robust regulatory oversight and integration with national ID systems. It aims to boost investor access, improve market liquidity, and diversify revenue streams through trading fees, token launches, staking, and other services.

 

SovFi will assist issuers in digitizing shares while DeFi Technologies’ subsidiary, Stillman Digital, will manage liquidity and operations.

“This partnership represents a transformative step in expanding digital asset infrastructure across Africa,” said Olivier Roussy Newton of DeFi Technologies.

“By collaborating with NSE, we will empower investors with new asset classes, driving economic growth, and positioning Kenya as a leading financial hub in Africa.”

 

Commenting on the new development, Frank Mwiti, CEO of the NSE said:

“This partnership marks a bold and strategic leap toward the future of African capital markets.

By collaborating with DeFi Technologies and SovFi to design and launch the KDX, we are laying the foundation for a dynamic digital marketplace that will unlock new investment opportunities, deepen market access, and position Kenya as a trailblazer in the tokenization and trading of real-world assets across the continent.”

 

The KDX will be deployed in three phases, with the first phase to be implemented by the end of Q4 2025 and the final phase by the end of Q2 2026. The revenue model for the KDX will include:

  • Trading fees

  • Withdrawal and deposit fees

  • Listing fees

  • Margin trading and lending

  • Staking services

  • Initial Exchange Offerings (IEOs) and token launches

  • Custody services

  • Tokenization services

  • Fiat conversion fees

  • Market-making

  • Yield services

  • Liquidity provision by DeFi Technologies’ wholly-owned subsidiary, Stillman Digital

KDX will operate under a shared ownership structure, with DeFi Technologies leading technology provision, liquidity management, and operational oversight, while NSE will handle market operations, regulatory approvals, and facilitate market access.

 

 

 

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