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:
- The NSE will facilitate the creation, issuance, and trading of digital asset ETPs and onboard Valour as an issuer
- Valour will expand its product offerings, utilize ETPs from Valour and affiliate companies, and provide expertise in issuing and managing digital asset-based financial products. Initially, this may include, but is not limited to, ETPs related to Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Hedera (HBAR)
- SovFi will leverage distribution channels, provide expertise in financial instruments, and support the integration of blockchain technology in the African financial markets
In the European Economic Area where Valour has issued 33 ETPs, ‘passporting’ allows registration in one member state to be recognized throughout the area.
“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.”
Through the MOU, Valour plans to expand its ETP product offerings and market reach in Africa, contributing to increased liquidity and investment opportunities.
“The passporting of Valour’s ETPs to the NSE will significantly enhance our product offerings. By facilitating the creation, issuance, and trading of digital asset ETPs, we are opening new avenues for both local and international investors,” said Frank Mwiti CEO of the Nairobi Securities Exchange.
“This move will not only diversify our market but also contribute to the growth of Kenya’s economy. We look forward to leveraging Valour’s expertise in digital assets and SovFi’s innovative financial solutions to bring cutting-edge investment opportunities to our market.”
Johan Wattenström, Director of SovFi commented:
“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.”
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