Tether has signed a tokenization deal with the Nairobi Securities Exchange. The agreement covers tokenized securities and blockchain-based market infrastructure. It also includes the potential use of Tether's USDT stablecoin as a settlement layer. The move marks one of the first major partnerships between a stablecoin issuer and a traditional African stock exchange.
What the deal covers
The deal is broad. It covers tokenized securities — meaning traditional stocks or bonds could be issued and traded on a blockchain. It also includes blockchain-based market infrastructure, which could modernize how the exchange clears and settles trades. And it leaves the door open for USDT to serve as a settlement layer, a role typically filled by fiat currency or central bank money.
The Nairobi Securities Exchange is one of Africa's larger exchanges, but it's been slow to adopt digital assets. This deal gives it a direct path to tokenization without building the tech from scratch. For Tether, it's a foothold in a regulated exchange environment — a shift from its usual focus on crypto-only platforms.
USDT's role
Using USDT as a settlement layer would be a first for a major African exchange. It would let traders settle transactions in a stablecoin rather than Kenyan shillings or dollars. That could cut costs and speed up settlement times. But it also raises questions about regulatory approval — Kenya's capital markets regulator hasn't yet signed off on stablecoin use for exchange settlements.
The exchange and Tether will now work on integrating the tokenization platform. No timeline has been announced for when the new infrastructure will go live. The regulator's stance on USDT as settlement remains the biggest open question.
