The Nairobi Securities Exchange (NSE), the leading securities exchange in Kenya, has become the latest institution to join the Hedera Governing Council. This partnership is set to fast-track the use of tokenized securities and digital assets in Kenya’s capital markets through the blockchain platform’s solid and fast-running platform.
NSE’s Role in Kenya’s Economic Growth
Established in 1954, the Nairobi Stock Exchange, commonly called the NSE, represents Kenya’s premier securities exchange market. NSE plans on effectively modernizing by joining the Hedera Council, hence achieving its objectives of boosting the Kenyan economy. Currently, the NSE intends to list tokenized securities on its platform utilizing Hedera’s technology to make digital securities more accessible to investors.
Accelerating the Launch of Digital Assets
From this partnership, the NSE will obtain Hedera’s advanced blockchain solution. The Hedera ecosystem allows for converting a range of assets into tokens, which can be exchanged smoothly. By implementing this technology, the NSE can enhance trading functionality, thus lowering the barriers to entry for investors and enabling more Kenyans to engage in the country’s financial markets.
The CEO of the NSE, Frank Mwiti, welcomed this move, saying,
“Tokenization has the potential to transform industries across Africa, and the NSE is committed to driving this innovation through the Hedera network, which is valued for its unmatched performance, security, and compliance standards.”
Bill Miller, Head of the Membership Committee at Hedera, also commented on including NSE in the Hedera Council.
“The NSE’s diverse reach provides an excellent foundation for Hedera to underpin global capital markets with a market capitalization of approximately $12.65 billion, daily transaction volumes exceeding $100 million, and 63 listed companies and securities across 11 sectors.”
Tokenization will be instrumental in scaling capital markets, improving liquidity and investment across Kenya and the rest of the continent as the country strives to attract local and foreign capital.
About NSE and Hedera
The NSE is one of the oldest exchanges in Africa, and it deals with trade within and outside different sectors. This gives it a sound trading platform for investors and is regulated by the Capital Markets Authority of Kenya.
Hedera is a distributed public ledger technology company run by the board of directors of some leading organizations. It is revolutionizing how assets are managed, exchanged, and charged through high-speed transactions and security.
This partnership marks a paradigm shift in the enhancement of capital Markets in Kenya through digitization. As a member of the HGC, the NSE is now opening up the door in both Kenya and across Africa towards utilizing tokenized assets and digital securities to provide brands new methods for economic development.
Source: https://blockchainreporter.net/hedera-and-nairobi-securities-exchange-unite-to-boost-kenyas-capital-markets/