The Nairobi Securities Exchange (NSE) has signed a Memorandum of Understanding (MOU) with Valour Inc., a subsidiary of Canadian listed firm DeFi Technologies Inc., and SovFi Inc, to introduce digital asset exchange-traded products (ETPs) to the Kenyan market.
- The collaboration will see Valour Inc. and SovFi leveraging their expertise in digital assets and financial solutions to create, issue, and trade these ETPs on the NSE.
- Kenya is already a major player in Africa’s cryptocurrency landscape, with a tech-savvy population and robust mobile money ecosystem.
- DeFi Technologies is a Canada-based company traded on CBOE Canada while Valour has issued 33 ETPs on European exchanges
In a statement released by the Toronto based stock exchange CBOE, DeFi Technologies said this move aims to enhance Kenya’s position as a leading financial hub in Africa by attracting a broader investor base and increasing market activity. It will also provide local and international investors with new opportunities to engage with the growing digital asset market in a secure and regulated environment.
“The passporting of Valour’s ETPs to the NSE will significantly enhance our product offerings,” said Frank Mwiti, CEO of the Nairobi Securities Exchange.
Kenya is one the leading African countries in digital assets adoption and ranks fifth globally, ahead of developed countries such as the United States, China, Russia, and South Africa, according to a 2022 report from Chainalysis. Only Vietnam, India, Pakistan, and Ukraine rank higher in terms of overall crypto adoption. Additionally, Kenya is ranked number one when it comes to to peer-to-peer (P2P) cryptocurrency transaction volumes.
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