Kenya is set to transform its financial markets with the launch of the Kenya Digital Exchange (KDX), a blockchain-based platform for tokenising real-world assets (RWAs).
The project is a joint effort between the Nairobi Securities Exchange (NSE) and Canadian blockchain company DeFi Technologies Inc, according to an announcement April 21.
Various assets, including debts, equities, commodities, and funds, will be enabled for tokenisation through the KDX to provide a marketplace for their issuance and trading. Valour Inc., DeFi Tech’s exchange-traded product (ETP) subsidiary, and SovFi Inc., a tokenisation platform, are also key partners in the project.
Read also: Like Nigeria, CBEX users in Kenya count losses
A transformative step for Africa
“This partnership represents a transformative step in expanding digital asset infrastructure across Africa,” said Olivier Roussy Newton of DeFi Tech. “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.”
The partnership between NSE, Valour, and SovFi aimed to introduce digital asset ETPs in Kenya. While Kenya is already one of Africa’s top three digital asset markets, its activity has largely been limited to crypto trading and remittances.
NSE CEO Frank Mwiti emphasized the long-term vision, stating, “This partnership marks a bold and strategic leap toward the future of African capital markets. We are laying the foundation for a dynamic digital marketplace that will unlock new investment opportunities and position Kenya as a trailblazer in tokenization.”
Kenya will launch the first phase in Q4 2025
The first phase of KDX is expected to launch in Q4 2025, focusing on primary market token issuance, user onboarding, and regulatory compliance.
Later stages will introduce artificial intelligence (AI) tools, secondary markets, and interoperability with global exchanges. The platform promises to enhance liquidity, democratize access to high-value assets, and attract tech-savvy investors.
However, challenges such as regulatory uncertainty and low digital literacy in some regions may remain hurdles to the development and widespread adoption.
If successful, KDX could set a precedent for other African nations exploring blockchain-based financial solutions. Meaning, this could drive financial inclusion and economic growth across Africa.
Read also: Kenya moves to regulate cryptocurrency with new virtual assets bill
How tokenised assets are changing investment
Tokenised assets are transforming global finance by turning physical and intangible assets into digital tokens on a blockchain.
This innovation boosts liquidity, increases accessibility, enhances transparency, cuts transaction costs, and enables global trading.
Just last month, Dubai advanced this trend by starting to tokenize its real estate market, aiming to make property investment more accessible and efficient for global investors. Tokenisation is rapidly reshaping how value is created, transferred, and stored across the globe.