Introduction
Crypto fund issuer Valour has taken a significant step towards expanding digital asset offerings by signing a memorandum of understanding with the Nairobi Securities Exchange (NSE) and financial instrument issuance platform SovFi. This partnership aims to facilitate the issuance and trading of digital asset exchange-traded products (ETPs) on the NSE in Kenya.
Innovative ETPs Set for Launch
Valour, along with affiliated companies, plans to introduce Bitcoin, Ether, Solana, and Hedera ETPs as the first digital asset offerings on the NSE. These ETPs will be "passported" to the NSE, allowing them to be recognized and traded on the exchange. Passporting, a concept used in the European Economic Area, enables financial products registered in one member state to be recognized throughout the area.
Valour's Expertise and Vision
Olivier Roussy Newton, CEO of Valour’s parent company DeFi Technologies, expressed his enthusiasm for the partnership, stating, “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.” DeFi Technologies, a Canada-based company traded on CBOE Canada, has a strong track record in the digital asset space. In June, the company launched a validator node on the Core Chain after partnering with Core to create the Valour Bitcoin Staking ETP on the Nordic Growth Market exchange. Valour currently issues 33 ETPs on European exchanges and launched the first Near Protocol ETP on the Swedish Spotlight Stock Market in July.
Regulatory Developments in Kenya
Kenya began the process of regulating digital assets in November 2022. A year later, the drafting of standalone legislation commenced with the participation of the Blockchain Association of Kenya. By April, a multi-agency government working group was actively developing a framework for monitoring and regulating cryptocurrencies and digital assets. This regulatory progress is crucial for fostering a secure and transparent environment for digital asset trading in Kenya.
A New Era for Digital Assets in Kenya
The collaboration between Valour, the NSE, and SovFi marks a significant milestone in Kenya's financial landscape. By introducing digital asset ETPs, this partnership aims to provide investors with regulated and secure exposure to the growing world of digital assets. As Kenya continues to advance its regulatory framework, the trading of digital assets on the NSE is poised to offer new opportunities for investors and contribute to the country's financial innovation.
