Nairobi Securities Exchange partners with Tether on blockchain tokenization initiative
The partnership encompasses blockchain-powered market infrastructure, tokenized securities and examines the feasibility of USDT serving as a settlement layer.
A memorandum of understanding has been signed between Tether and the Nairobi Securities Exchange, establishing a framework to investigate tokenized securities, market infrastructure powered by blockchain technology and the feasibility of utilizing USDt (USDT) as a settlement layer.
In an announcement released on Tuesday, Tether revealed that the memorandum establishes a roadmap for investigating digital asset education, market infrastructure built on blockchain technology and the tokenization of real-world assets, which includes the possible deployment of its Hadron tokenization platform for the issuance and trading of securities in tokenized form.
Additionally, the memorandum specifies that both parties will evaluate instant settlement mechanisms alongside the feasibility of deploying USDT as a digital infrastructure layer for settlement purposes, contingent upon compliance with regulatory frameworks in Kenya.
This partnership emerges as real-world asset tokenization (RWAs) maintains its upward momentum in the market. Data from RWA.xyz indicates that the sector's onchain value has expanded to approximately $36.8 billion, a figure that excludes stablecoins.
According to separate tracking by RWA.xyz, stablecoins account for nearly $298 billion, which certain market participants categorize as RWAs given that they represent claims on reserve assets held offchain. With a market capitalization of approximately $184 billion, USDT holds the position as the world's largest stablecoin.