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Tether inks tokenization deal with Nairobi Securities Exchange

Created at 29 Jul · 3:07 AM1 source↑ Market-relevant
IN SHORT

Tether has signed a memorandum of understanding with the Nairobi Securities Exchange to explore tokenized securities, blockchain-based market infrastructure, and the potential use of USDT as a settlement layer. The agreement also covers digital asset education and the use of Tether's Hadron platform.

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Key Numbers

$36.8 billiononchain value of tokenized real-world assets (excluding stablecoins)
$298 billionstablecoins tracked by RWA.xyz
$184 billionmarket capitalization of USDT

Who's Involved

Tether
stablecoin issuer signing tokenization deal
Nairobi Securities Exchange
partnering on blockchain market infrastructure

↳ Why This Matters

This partnership signifies a step towards integrating blockchain technology and stablecoins into traditional securities markets, potentially increasing efficiency and accessibility in emerging markets like Kenya.

Key facts

  • Tether and the Nairobi Securities Exchange have signed a memorandum of understanding.
  • The agreement focuses on exploring tokenized securities and blockchain-based market infrastructure.
  • The potential use of USDT as a settlement layer is also part of the assessment.
  • Tether's Hadron tokenization platform is being considered for issuing and trading tokenized securities.

Tether has entered into a memorandum of understanding with the Nairobi Securities Exchange to explore the integration of blockchain technology into the financial market. The collaboration aims to investigate the development of tokenized securities, establish blockchain-based market infrastructure, and assess the feasibility of utilizing Tether's USDt (USDT) stablecoin as a settlement layer within Kenya's regulatory framework.

The agreement, announced Tuesday, also encompasses plans for digital asset education and the tokenization of real-world assets (RWAs). Tether's proprietary Hadron tokenization platform is being considered for the issuance and trading of these tokenized securities. Furthermore, the partnership will evaluate instant settlement mechanisms.

This move aligns with the growing trend of tokenized RWAs, a sector that has seen significant growth, with an onchain value of approximately $36.8 billion, excluding stablecoins, according to RWA.xyz. The same source tracks nearly $298 billion in stablecoins, which are also viewed by some as RWAs due to their backing by offchain reserve assets. USDT, the world's largest stablecoin by market capitalization, is central to this initiative.

Frequently asked questions

Tether is a stablecoin issuer, known for its USDT token, which is pegged to the US dollar and aims to provide stability in the volatile cryptocurrency market.

Tokenized RWAs are traditional assets, such as real estate, bonds, or commodities, that have been converted into digital tokens on a blockchain, allowing for easier trading and fractional ownership.

Using USDT as a settlement layer could enable faster and more efficient cross-border transactions and securities settlement, provided it complies with local regulations.

What Happens Next

01Assessment of instant settlement mechanisms.
02Evaluation of USDT's use as a digital settlement infrastructure layer.
03Exploration of blockchain-based market infrastructure development.
04Potential use of Tether's Hadron platform for tokenized securities.

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Cadence

How It Developed

Tether signed a memorandum of understanding with the Nairobi Securities Exchange.
The agreement aims to explore tokenized securities and blockchain-based market infrastructure.
The deal also assesses the potential use of USDT as a digital settlement layer.
Tether's Hadron tokenization platform may be used for issuing and trading tokenized securities.

Sources

T1
Tether signs tokenization deal with Nairobi Securities ExchangeThe agreement covers tokenized securities, blockchain-based market infrastructure and the potential use of USDT as a settlement layer.Cointelegraph

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