Tether, the company behind the world’s largest stablecoin USDT, has signed a memorandum of understanding with the Nairobi Securities Exchange (NSE) to explore tokenized securities, blockchain-based market infrastructure, and the potential use of USDT as a settlement layer. The agreement, announced Tuesday, marks one of the most significant blockchain partnerships involving a major African stock exchange.
Scope of the agreement
According to Tether’s announcement, the memorandum outlines plans to evaluate blockchain-based market infrastructure, digital asset education initiatives, and real-world asset (RWA) tokenization. The parties will also explore the use of Tether’s Hadron tokenization platform for issuing and trading tokenized securities. Additionally, the agreement calls for assessing instant settlement mechanisms and the potential use of USDT as a digital settlement infrastructure layer, where permitted under Kenyan regulations.
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Growing momentum for tokenized real-world assets
The deal comes as tokenized RWAs continue to gain traction globally. The sector’s onchain value has grown to approximately $36.8 billion, excluding stablecoins, according to data from RWA.xyz. The same platform tracks nearly $298 billion in stablecoins, which some market participants also classify as RWAs because they represent claims on offchain reserve assets. USDT, with a market capitalization of roughly $184 billion, remains the dominant stablecoin by a wide margin.
Implications for African capital markets
The partnership signals growing institutional interest in blockchain-based financial infrastructure within African markets. The Nairobi Securities Exchange, one of the oldest and most established exchanges on the continent, could serve as a test case for how traditional capital markets integrate tokenization and stablecoin settlement. If implemented, the use of USDT for settlement could reduce transaction costs and settlement times compared to conventional banking rails, particularly for cross-border transactions.
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Conclusion
Tether’s memorandum with the Nairobi Securities Exchange represents a concrete step toward integrating stablecoin and tokenization technology into regulated capital markets. While the agreement remains exploratory and subject to regulatory approvals, it highlights the growing intersection between traditional finance and blockchain infrastructure in emerging economies. The outcome of this partnership could influence how other African exchanges approach digital asset adoption.
FAQs
Q1: What does the Tether-NSE agreement cover?
The memorandum covers exploration of tokenized securities, blockchain-based market infrastructure, digital asset education, and the potential use of USDT as a settlement layer, subject to Kenyan regulatory approval.
Q2: What is Tether’s Hadron platform?
Hadron is Tether’s tokenization platform designed for issuing and trading tokenized real-world assets, including securities, on blockchain networks.
Q3: How large is the tokenized RWA market?
The onchain value of tokenized real-world assets, excluding stablecoins, stands at approximately $36.8 billion. Stablecoins, often considered RWAs, represent nearly $298 billion in onchain value.
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