Tether and Nairobi Securities Exchange Sign MoU on Tokenized Securities and Blockchain Infrastructure

Tether, the issuer of the USDT stablecoin, and the Nairobi Securities Exchange formalized a memorandum of understanding on July 28, 2026. The agreement centers on joint exploration of blockchain applications in capital markets, including tokenized securities, investor education programs, and modernized settlement processes in Kenya.

The Nairobi Securities Exchange, founded in 1954, operates as Kenya’s primary venue for equities, debt securities, and derivatives. It holds a market capitalization of approximately $26.4 billion and participates in the Association of Futures Markets as well as the United Nations Sustainable Stock Exchanges initiative. The partnership aligns with the exchange’s 2025–2029 Strategic Plan, which prioritizes technology adoption and expanded investor participation.

Scope of the Collaboration

Under the memorandum, the parties will examine the development of blockchain-based market infrastructure using distributed ledger technology. A core element involves Tether’s Hadron platform, intended to support the issuance and trading of tokenized securities. This includes research into fractional ownership models that could improve access for both domestic investors and Kenya’s diaspora community.

Additional workstreams cover the design of onboarding systems that meet Kenya’s anti-money laundering and know-your-customer requirements. The agreement also addresses the potential for instant or atomic settlement mechanisms that could shorten the exchange’s existing multi-stage settlement cycle.

Education forms another pillar. Structured training sessions, workshops, and knowledge-transfer programs are planned for NSE-listed brokers and retail investors to increase familiarity with digital assets and related capital market opportunities.

Potential Role for USDT and Regulatory Context

The parties will assess whether USDT could function as a digital settlement layer to support liquidity, subject to permission under Kenyan regulations. Kenya’s Virtual Asset Service Providers Act, which took effect on November 4, 2025, assigns oversight of virtual asset tokenization and related platforms to the Capital Markets Authority. The Central Bank of Kenya holds responsibility for stablecoin issuance. Draft implementing regulations were released in March 2026 and remain under review.

No regulatory approval for USDT in securities settlement or for any tokenized product was announced alongside the memorandum.

Industry Backdrop and Prior Exchange Initiatives

The agreement arrives amid growth in tokenized real-world assets. Tracking data shows on-chain value for such assets, excluding stablecoins, near $36.8 billion to $36.9 billion. Stablecoins overall account for roughly $298 billion in tracked value, with USDT maintaining a market capitalization of approximately $184 billion.

The Nairobi Securities Exchange has previously advanced digital initiatives. It explored digital asset exchange-traded products in August 2024, joined the Hedera Governing Council in October 2024, and established an Innovation Lab in November 2025. In 2025 it also collaborated with other firms on concepts for a Kenya Digital Exchange covering tokenized equities, debt, funds, and commodities.

Tether CEO Paolo Ardoino described the broader direction as progress from crypto applications toward real-life uses and cross-border institutional finance. NSE Chief Executive Frank Mwiti stated that the memorandum supports the exchange’s strategic priorities around technology and wider market access.

The arrangement forms part of Tether’s series of similar understandings with regulated market operators in other regions, including a prior agreement focused on education and tokenization with the Dubai Multi Commodities Centre.

Implementation details, including selection of any pilot assets, custody arrangements, investor disclosures, and final regulatory clearances, remain to be determined. Until those elements advance, the memorandum functions as a framework for study rather than an operational market change.