What’s Happening?
The Nairobi Securities Exchange (NSE) has partnered with Canadian based DeFi Technologies, SovFi, and Valour Inc. to establish the Kenya Digital Exchange (KDX), a regulated blockchain platform for tokenizing real-world assets like equities, debt, and commodities.
This follows a MoU between Valour, the NSE, and SovFi to create and trade digital asset exchange-traded products (ETPs) in Kenya and beyond.
Unlike public blockchains such as Ethereum or Solana, KDX will operate with government oversight, offering the advantages of blockchain technology while ensuring compliance with securities regulations.
The platform will be built on the Hedera blockchain, a decentralized network for dApp development. The NSE joined the Hedera Governing Council in October 2024, granting it governance rights and the ability to operate a node.
Rollout Plan
The Kenya Digital Exchange rollout will happen in three stages:
- Phase 1: Platform design, regulatory approvals, and onboarding investors.
- Phase 2: Pilot trading and the launch of Exchange-Traded Products (ETPs) by Valour, expected to list on the NSE by Q3 2025.
- Phase 3: Full commercial launch, targeted for Q2 2026, with revenue from trading fees, listing fees, and staking services.
KDX’s business model will generate revenue from various streams, including trading fees, listing charges, staking services, custody, fiat on-ramp/off-ramp services, margin trading, and liquidity provision.
Under the arrangement, DeFi Technologies will manage the technology and liquidity side of the platform, while the NSE will focus on day-to-day market operations and regulatory supervision.
What This Means for You?
The launch of KDX could transform how Kenyan investors access assets, making trading faster, cheaper, and more secure.
If you’re an investor, it’s worth watching how this platform develops, new opportunities to invest in tokenised versions of traditional assets like stocks, bonds, and commodities may soon become available.
For startups and businesses, KDX could offer a new, compliant way to raise funds and reach more investors without the heavy paperwork that usually comes with traditional listings.
Long term, if the model succeeds, it will inspire similar projects across Africa, pushing the continent deeper into the global digital asset economy.
