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DeFi Technologies, its subsidiary Valour Inc., and SovFi have formed a strategic partnership with the Nairobi Securities Exchange (NSE) to establish the Kenya Digital Exchange (KDX), a regulated platform for tokenising real-world assets.
The partnership aims to enhance Kenya's financial market infrastructure by facilitating the trading of tokenised equities, debt, funds and commodities. According to the announcement, Valour's exchange-traded products (ETPs) are expected to be listed on the NSE before the end of Q3 2025.
The development follows a previously signed Memorandum of Understanding between Valour, NSE and SovFi, which outlined plans to create, issue and trade digital asset ETPs in Kenya. Since then, Valour has engaged one of Kenya's leading law firms and consulted with the Capital Markets Authority to ensure regulatory compliance.
"This partnership represents a transformative step in expanding digital asset infrastructure across Africa," said Olivier Roussy Newton of DeFi Technologies. "By collaborating with NSE, we will empower investors with new asset classes, driving economic growth, and positioning Kenya as a leading financial hub in Africa."
NSE Chief Executive Frank Mwiti commented: "This partnership marks a bold and strategic leap toward the future of African capital markets. By collaborating with DeFi Technologies and SovFi to design and launch the KDX, we are laying the foundation for a dynamic digital marketplace that will unlock new investment opportunities, deepen market access, and position Kenya as a trailblazer in the tokenization and trading of real-world assets across the continent."
Ownership Structure and Operational Framework
The Kenya Digital Exchange will operate under a shared ownership model that divides responsibilities between the key stakeholders. DeFi Technologies will take the lead on technology provision, including the blockchain infrastructure and integration with Hedera. The company will also manage liquidity and oversee day-to-day operations of the platform.
Meanwhile, the Nairobi Securities Exchange will be responsible for market operations within the Kenyan context, securing necessary regulatory approvals from Kenyan authorities, and facilitating market access for local and international investors. This division of responsibilities leverages the strengths of each partner—DeFi Technologies' expertise in blockchain technology and digital assets, and NSE's established presence and regulatory standing in the Kenyan financial market.
SovFi will play a crucial role in the partnership by assisting companies and entities in tokenising their shares and other real-world assets. This function is expected to promote broader blockchain adoption across African financial markets while enhancing distribution channels and market penetration opportunities throughout the continent.
Three-Phase Rollout Plan
The KDX will be implemented through a carefully structured three-phase approach:
▪️ The first phase, scheduled for completion by the end of Q4 2025, will focus on establishing the foundations of the platform. This includes investor onboarding processes, ensuring compliance with Kenyan regulatory requirements, and enabling primary market token issuance for initial offerings.
▪️ The second phase will introduce secondary market trading capabilities, allowing investors to buy and sell previously issued tokens. This phase will also implement advanced AI trading strategies and market-making services to ensure liquidity in the marketplace.
▪️ By the final phase, expected to conclude by the end of Q2 2026, the KDX will achieve full implementation with interoperability with global digital exchanges. This will potentially connect Kenya's digital asset market with international markets, enhancing cross-border investment opportunities.
Revenue for the exchange will come from multiple sources, including trading fees, withdrawal and deposit fees, listing fees, margin trading, staking services, Initial Exchange Offerings, custody services, fiat conversion fees, and market-making services. Additionally, Stillman Digital, a wholly-owned subsidiary of DeFi Technologies, will provide liquidity services to the exchange.
Kenya has emerged as a significant market for digital assets, with cryptocurrency transactions valued at approximately $18.6 billion (KES 2.4 trillion) in 2022, exceeding transaction volumes of some commercial banks in the country. The nation has over 6 million crypto users—roughly 10% of the population—and ranks among the top five African nations for cryptocurrency ownership.
The country's digital economy has been bolstered by an 85% smartphone penetration rate and a thriving mobile money ecosystem. In 2024, Kenya's tech sector attracted $638 million in venture funding, making it the leading destination for digital economy investment in Africa.
DeFi Technologies Inc. is listed on CBOE Canada, the German stock exchange, and trades over-the-counter in the US. The company describes itself as pioneering the convergence of traditional capital markets with decentralised finance.
