DeFi Technologies, a Toronto-based company focused on integrating traditional capital markets with DeFi has partnered with the Nairobi Securities Exchange (NSE) to establish the Kenya Digital Exchange (KDX), alongside its subsidiary Valour and SovFi.
The goal is to enhance Kenya’s financial infrastructure by enabling access to global capital markets through tokenisation and digital asset trading.
This follows a MoU signed between Valour, the NSE, and SovFi to create, issue, and trade digital asset exchange-traded products (ETPs) in Kenya and potentially other markets.
Valour’s ETP listing on the NSE is progressing, with Valour consulting local law firms and the Capital Markets Authority of Kenya.
The infrastructure for launching select ETPs is expected to be in place by Q3 2025.
KDX will be a regulated platform for tokenising real-world assets like equities, debt, funds, and commodities. The platform will use blockchain technology to enable secure, transparent transactions.
Olivier Roussy Newton of DeFi Technologies, stated,
“This partnership represents a transformative step in expanding digital asset infrastructure across Africa.”
Frank Mwiti, CEO of the NSE, added,
“This partnership marks a bold and strategic leap toward the future of African capital markets.” SovFi will assist in tokenising assets and promoting blockchain adoption in African markets.
The KDX will be deployed in three phases, with the initial focus on investor onboarding, regulatory compliance, and primary market token issuance.
Later phases will include secondary market trading and global exchange interoperability.
The platform’s revenue model will include trading, listing, and withdrawal fees, margin trading, staking, token launches, custody, fiat conversion, market-making, and liquidity provision.
DeFi Technologies will oversee technology and liquidity, while the NSE will manage market operations and regulatory approvals.
Kenya’s cryptocurrency market was valued at US$18.6 billion (KES 2.4 trillion) in 2022, with over 6 million crypto users, around 10% of the population.
The country ranks among the top five African nations for cryptocurrency ownership.
Kenya’s fintech sector continues to grow, attracting significant venture funding and positioning the country as a hub for digital asset trading and tokenisation in Africa.
Featured image credit: edited from freepik
