Overview
- The memorandum of understanding was signed on July 28 and creates an exploratory partnership to study tokenizing Kenyan securities, building blockchain market infrastructure and delivering education programs.
- The deal centers on Tether’s Hadron platform for creating tokenized assets and on assessing whether USDT could be used for settlement only where Kenyan rules allow it.
- The agreement is non-binding and does not name pilot assets, set timelines, allocate budgets or commit the Nairobi Securities Exchange to settle trades in USDT.
- Kenya’s Virtual Asset Service Providers Act gives oversight of tokenization to the Capital Markets Authority and stablecoins to the Central Bank of Kenya, and implementing regulations remain in draft form.
- If regulators approve and technical work ties blockchain records to existing custody and central-depository systems, the plan could enable fractional ownership and lower barriers for local investors and the diaspora while shortening settlement times.