Overview
- Tether and the Nairobi Securities Exchange signed a non-binding memorandum of understanding on July 28 to study tokenizing securities and related market infrastructure.
- The agreement centers on Tether’s Hadron platform and lists token issuance, fractional ownership, investor education, and AML/KYC alignment as areas for joint work.
- Kenya’s Virtual Asset Service Providers Act assigns tokenization oversight to the Capital Markets Authority and stablecoin oversight to the Central Bank of Kenya, so regulatory approvals are required before any pilot can proceed.
- The MoU does not name pilot assets, pick a blockchain, set custody arrangements, commit to using USDT for settlement, or give a timeline, leaving implementation and legal responsibility to later design work.
- If approved and built, pilots could shorten multi-step settlements and lower entry barriers for local and diaspora investors, but practical rollout will hinge on custody, settlement-finality, data protection and specific regulator rulings.