Kenya Digital Exchange to Tokenize Real-World Assets in Blockchain Push Backed by NSE

Kenya is making a major move into the future of finance with the Kenya Digital Exchange (KDX). Announced on April 28, KDX is a blockchain-powered platform that will be built on the Hedera network. It will allow tokenization and digital trading of real-world assets like stocks, bonds, funds, and commodities.

The project is a joint effort between DeFi Technologies Inc., its subsidiaries Valour Inc. and SovFi Inc., and the Nairobi Securities Exchange (NSE). The goal is to give Kenyan investors broader access to global capital markets through secure and transparent blockchain technology.

“This partnership represents a transformative step in expanding digital asset infrastructure across Africa,” said  Olivier Roussy Newton, CEO of DeFi Technologies. “Working with the NSE, we’re creating opportunities for investors to tap into new asset classes and helping position Kenya as a financial hub on the continent.”

The exchange will be fully regulated and built to support the issuance, trading, and liquidity of tokenized assets. It will use advanced technologies, including integration with the Hedera blockchain, to offer a secure and efficient trading experience.

KDX to Launch in Three Phases, Starting with Investor Onboarding and Compliance.

The KDX will roll out in three phases. The first phase, expected by the end of 2025, will focus on getting investors onboard and ensuring full regulatory compliance. Later phases will introduce secondary trading, AI-powered strategies, and connections with global digital exchanges. Full launch is set for mid-2026.

According to the announcement, KDX will generate revenue through trading fees, token launches, staking, lending, fiat conversions, and more. DeFi Technologies will lead on technology and operations, while the NSE handles market regulation and access.

This new development builds on an earlier Memorandum of Understanding signed between Valour, SovFi, and the NSE. Together, they aim to bring digital asset exchange-traded products (ETPs) to the Kenyan market and beyond

Kenya Moves Toward Crypto Regulation With Draft Policy Proposal

On Jan 10 2025, Treasury Cabinet Secretary John Mbadi talked about the regulations with a draft policy proposal. He reportedly said the government is “committed to creating the necessary legal and regulatory framework” for cryptocurrencies.

The proposed “National Policy on Virtual Assets and Virtual Asset Service Providers” aimed to set clear sutandards for the growing sector. It focused on creating a legal environment that balanced innovation with consumer safety, risk management, and financial integrity.

The draft policy marked a turning point in Kenya’s approach to digital assets, following years of caution from the Central Bank of Kenya (CBK), which had previously warned citizens against investing in cryptocurrencies due to their volatility and risks. However, with growing interest and adoption of crypto across the country, the government appeared ready to embrace regulation rather than resist it.

Key areas addressed in the draft included preventing money laundering and terrorism financing, while also ensuring robust consumer protection. The policy also sought to define procedures and standards for the registration and oversight of Virtual Asset Service Providers (VASPs), ensuring that only qualified entities operated within the space.