The Nairobi Securities Exchange (NSE), one of Africa’s largest financial markets, has announced a strategic partnership with Hedera to lead tokenization initiatives in Kenya and beyond.
According to the press release, the partnership is set to modernize Africa’s financial infrastructure. It will use Hedera’s cutting-edge distributed ledger technology (DLT) to facilitate secure, transparent, and efficient trading of digital and tokenized assets.
It will also offer Kenyan and African investors a gateway to innovative financial products and provide a robust platform for global liquidity.
Celebrating 70 years of operations, the NSE is now the 32nd member of the Hedera Council, joining a diverse group of global organizations that oversee the Hedera network.
As part of this collaboration, the NSE will operate a Hedera node and leverage Hedera’s technology to establish a digital asset and tokenized securities exchange.
This will expand access to financial services, streamline cross-border transactions, and support secure remittances through Hedera’s USDC-backed platform.
Nairobi Securities Exchange and Hedera: Is this the Future of Tokenization in Africa?
The NSE’s collaboration with Hedera is part of a regional shift toward digital assets in Africa. Tokenization is expected to boost the continent’s financial inclusion and investment potential.
Frank Mwiti, CEO of the NSE, emphasized that this partnership aligns with the NSE’s strategic goal of creating a world-class market infrastructure through innovative and diverse financial products.
Mwiti states,
“Tokenization has the potential to transform industries across Africa, and the NSE is committed to driving this innovation. Partnering with Hedera allows us to leverage its unmatched performance, security, and compliance standards.”
Africa is now seen as a place where rapid technological adoption and economic growth provide fertile ground for new financial solutions.
Notably, the NSE aims to create a seamless, regulated marketplace for digital assets in collaboration with Hedera, allowing investors to buy, sell, and trade tokenized securities.
This venture will enable the NSE to meet the increasing demand for innovative financial services in Africa from both domestic and international investors while adhering to high regulatory standards.
The Hedera-powered platform will also open up global liquidity channels, allowing African investors to participate more broadly in the global economy and offering local businesses cost-effective capital solutions.
Strengthening Hedera’s Global Presence through African Markets
For Hedera, this partnership presents a significant opportunity to expand its presence within one of Africa’s most promising economies.
Bill Miller, Co-Chair of Hedera’s Membership Committee, noted,
“The Nairobi Securities Exchange brings unparalleled expertise and deep connections within the African market. As one of Sub-Saharan Africa’s largest economies, Kenya presents a significant opportunity for driving the adoption of digital assets and Hedera’s technology.”
With a market capitalization of approximately $12.65 billion and daily transaction volumes exceeding $100 million, the NSE is poised to lead the tokenization movement across Africa.
Hedera’s technology will enable the NSE to offer a high-performance platform for digital assets.
As part of the Hedera Council, the NSE joined a global network of financial institutions and got the opportunity to expand the reach of Hedera’s technology into new regions.
With tokenization driving a shift in how assets are managed and exchanged, the collaboration between the NSE and Hedera is expected to impact financial markets and infrastructure across Africa.
Notably, Africa’s adoption of crypto has been growing massively lately. Trust Wallet’s CEO, Eowyn Chen, shared during Korea Blockchain Week 2024 that they are seeing notable growth in user adoption in emerging regions, including Africa.
Despite market volatility, they maintained steady downloads, with 1-2 million new users weekly.
Many users in these areas increasingly turn to stablecoins, such as USDC, as a secure way to protect wealth amidst inflation and unstable local currencies.
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