Tether has entered into a memorandum of understanding with the Nairobi Securities Exchange, aiming to investigate opportunities in tokenized securities, blockchain-based market infrastructure, and the possible application of USDT as a digital settlement layer.
Focus on Tokenization and Blockchain Infrastructure
The company announced on Tuesday that the agreement marks the start of a joint initiative to explore blockchain-driven market infrastructure and real-world assets, such as tokenized securities. Tether’s Hadron platform may also play a key role in issuing and trading these tokenized instruments.
According to the memorandum, the two organizations will collaborate on educational efforts related to digital assets and study instant settlement mechanisms. They will also evaluate the use of USDT, Tether’s flagship stablecoin, to serve as a digital settlement infrastructure layer, where such approaches are permitted under Kenyan law.
Tether, registered in the British Virgin Islands, is known for developing USDT, a leading stablecoin that is pegged to the US dollar and widely used across global crypto markets.
Mini dictionary: Nairobi Securities Exchange, Kenya’s principal stock exchange, facilitates trading of shares, bonds, and other securities within the country.
Tokenized Real-World Assets and Industry Trends
The announcement arrives as the tokenization of real-world assets (RWAs) gains momentum in both emerging and developed markets. Tokenized RWAs now hold an estimated onchain value of $36.8 billion, excluding stablecoins, according to research by RWA.xyz.
| Asset Category | Onchain Value |
|---|---|
| Tokenized RWAs (excluding stablecoins) | $36.8 billion |
| Stablecoins | $298 billion |
Researchers at RWA.xyz also note that some market participants regard stablecoins as a form of RWA, since these tokens are backed by reserves held offchain. USDT, with a circulating market capitalization close to $184 billion, remains the most prominent stablecoin globally.
Tether and the Nairobi Securities Exchange plan to build on blockchain-based infrastructure and digital asset education while exploring new settlement models using USDT where regulations allow.
