Kenya’s Nairobi Securities Exchange (NSE) has unveiled plans to establish the Kenya Digital Exchange (KDX), a blockchain-powered platform aimed at tokenizing real-world assets under regulatory oversight. The initiative is a collaboration with Canadian firms DeFi Technologies, its subsidiary Valour Inc., and SovFi, and is set to bring traditional securities into the world of decentralized finance without compromising compliance.
KDX will enable Kenyan companies to issue tokens and digitize various asset classes—including equities, debt instruments, funds, and commodities-within a secure, regulated environment. Unlike tokens typically issued on public blockchains like Ethereum or Solana, which operate with minimal oversight, KDX will be subject to securities regulation, bridging the gap between blockchain innovation and market safeguards.
The exchange will be built on the Hedera blockchain, a decentralized public network that supports the creation of decentralized applications. NSE’s involvement with Hedera began in October 2024, when it joined the network’s Governing Council, gaining voting rights and operational authority within the ecosystem.
The launch of KDX will unfold in three phases. The first phase will focus on developing the platform’s structure, ensuring full regulatory compliance, and onboarding investors. This phase also includes the introduction of primary market token issuance. The second phase will test trading capabilities and facilitate the listing of exchange-traded products (ETPs) issued by Valour, which are expected to appear on the NSE by the third quarter of 2025. The final phase, set for full commercial rollout in the second quarter of 2026, will see the platform open to broader activity and revenue generation through trading fees, listing charges, and staking services.
This move places Kenya among the pioneers on the continent exploring regulated tokenization of real-world assets, positioning the country to tap into the potential of digital finance while maintaining institutional integrity.
