Kenya’s NSE is set to introduce digital asset ETPs, thanks to Valour’s collaboration with SovFi, bringing Bitcoin, Ether, Solana, and Hedera to African investors. This move marks a significant step in Kenya’s digital finance journey.
Imagine a bustling market in Nairobi, the heart of Kenya, where traders are not just dealing in traditional stocks and bonds, but also in digital assets like Bitcoin, Ether, Solana, and Hedera. This scenario is set to become a reality as Crypto fund issuer Valour has signed a groundbreaking memorandum of understanding with the Nairobi Securities Exchange (NSE) and SovFi, a financial instrument issuance platform, to introduce digital asset exchange-traded products (ETPs) on the NSE.
Valour’s Ambitious Move into Africa
Valour’s decision to bring digital asset derivatives to Kenya marks a significant step in the evolution of the NSE. This move could position Nairobi as a pivotal hub for digital asset trading in Africa. The collaboration will see Bitcoin, Ether, Solana, and Hedera ETPs from Valour and its affiliated companies being among the first digital asset offerings on the NSE.
These ETPs will be “passported” to the NSE. In the context of the European Economic Area, “passporting” allows financial instruments registered in one member state to be recognised throughout the area. Olivier Roussy Newton, CEO of Valour’s parent company DeFi Technologies, highlighted the importance of this development, stating, “By leveraging our expertise in issuing innovative ETPs and facilitating the passporting of our financial instruments to the NSE, we aim to provide investors with secure and regulated exposure to the dynamic world of digital assets.”
DeFi Technologies: Pioneering Innovation
Defi Technologies, a Canada-based company traded on CBOE Canada, is at the forefront of this initiative. In June, DeFi Technologies launched a validator node on the Core Chain after partnering with Core to create the Valour Bitcoin Staking ETP on the Nordic Growth Market exchange. This move reflects the company’s commitment to innovation and expanding the reach of digital assets.
Valour already issues 33 ETPs on European exchanges and made headlines when it launched the first Near Protocol ETP on the Swedish Spotlight Stock Market in July. The introduction of these ETPs in Kenya signifies a broader strategy to make digital asset investments accessible and regulated in emerging markets.
Kenya’s Journey to Digital Asset Regulation
Kenya’s journey towards embracing digital assets began in November 2022 when the process of regulating these assets started. A year later, the Blockchain Association of Kenya participated in drafting standalone legislation to govern the digital asset space. As of April, a multi-agency government working group has been developing a framework for monitoring and regulating cryptocurrencies and digital assets.
This proactive approach underscores Kenya’s growing interest in the digital economy. In May 2023, the Kenyan government partnered with the Abu Dhabi-based blockchain platform Venom Foundation to launch a blockchain and Web3 hub in Africa. This hub aims to foster innovation and support the development of new technologies in the region.
The Bigger Picture: Kenya’s Digital Future
The introduction of Valour’s digital asset ETPs is not just a milestone for the NSE but also a part of a larger narrative of technological advancement in Kenya. Despite some bumps along the way, such as the initial resistance to the Worldcoin project, Kenya has shown resilience and adaptability. The suspension of the Sam Altman-backed project in August 2023, just days after its official launch, and its eventual return in June, highlights the dynamic and sometimes challenging path towards digital integration.
Kenya’s commitment to regulating and fostering digital assets is a testament to its forward-thinking approach. The country’s efforts to create a robust framework for digital assets will likely serve as a model for other African nations looking to navigate the complex world of cryptocurrencies and blockchain technology.
Conclusion
Kenya’s embrace of digital assets through the introduction of Valour’s ETPs on the NSE is a forward-looking move that could reshape the financial landscape in Africa. This initiative aligns with global trends toward digital finance and reflects a growing recognition of the importance of regulated and secure investment avenues in the digital asset space. As Valour and its partners bring these innovative products to the Kenyan market, they are not just expanding their footprint but also paving the way for a new era of financial inclusion and technological progress in Africa. The future looks promising as Kenya continues to build its reputation as a hub for digital innovation and investment.
