Kenya's Nairobi Securities Exchange (NSE) Signs MoU with Valour and SovFi to Issue Digital Asset Exchange-Traded Products (ETPs)

Kenya's Nairobi Securities Exchange (NSE) has signed a memorandum of understanding with Valour, a global crypto fund issuer and SovFi

Kenya’s Nairobi Securities Exchange (NSE) has signed a memorandum of understanding with Valour, a global crypto fund issuer, and SovFi, a financial instrument issuance platform, on issuing and trading digital asset exchange-traded products (ETPs) on the NSE in Kenya.

According to a press release by Valour Inc., the key objectives of the MOU include facilitating the creation, issuance, and trading of digital asset ETPs on the NSE by leveraging Valour’s extensive expertise in digital assets and ETPs.

The MOU aims to deploy financial products developed by Valour and SovFi, develop market infrastructure and enhance market access to global capital through tokenized finance primitives and real-world assets.

Bitcoin, Ethereum, Solana, and Hedera ETPs from Valour and affiliated companies may be the first digital asset offerings on the NSE. The ETPs will be ‘passported’ to the NSE, according to the statement.

In this collaborative effort:

Valour, through its European subsidiary, will be responsible for issuing the ETPs.

SovFi will facilitate the tokenization of the ETPs and related processes.

The NSE will list, trade, and clear the ETPs on its platform, making them available to a broad range of investors.

The statement highlights the significance of ‘passporting’ financial instruments within the European Economic Area, where Valour has already issued 33 ETPs.

Commenting on the development, Johan Wattenström, Director of SovFi, said:

“This collaboration between SovFi, the NSE, and Valour represents a significant step towards expanding access to innovative financial products.

SovFi’s expertise in tokenization and blockchain technology will play a crucial role in this collaboration. Along with the NSE’s established market presence and Valour’s ETP expertise, this MOU has the potential to accelerate the adoption of financial products, fostering growth and innovation across the African continent and beyond.”

Frank Mwiti, CEO of the Nairobi Securities Exchange, said:

“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.”

The NSE CEO added that Valour's presence on the exchange will contribute to the growth of Kenya's economy.

“We are excited about the possibilities that this collaboration will unlock for the Kenyan market and beyond,” Wattenström concluded.

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