- Strategic MOU Announcement: DeFi Technologies’ subsidiary, Valour Inc., has signed a Memorandum of Understanding (MOU) with the Nairobi Securities Exchange (NSE) and SovFi Inc. to facilitate the creation, issuance, and trading of digital asset exchange-traded products (ETPs) in the African market, leveraging Valour’s expertise in digital assets and SovFi’s financial solutions.
- Objectives and Outcomes: The collaboration aims to enhance market infrastructure, attract a broader investor base, and increase trading volumes by deploying Valour’s ETPs on the NSE. This partnership will strengthen the NSE’s position as a leading financial hub in Africa and expand Valour’s market reach in Africa, contributing to increased liquidity and investment opportunities.
- Kenya’s Digital Asset Landscape: Kenya, a technological innovation hub with a robust mobile money ecosystem and 85% smartphone penetration, is the largest cryptocurrency market in East Africa and ranks among the top five on the continent. The country is witnessing growing digital asset adoption for practical applications, highlighting its potential to transform the financial landscape.
DeFi Technologies Inc., a financial technology company that pioneers the convergence of traditional capital markets with the world of decentralised finance (“DeFi”), is pleased to announce that its subsidiary, Valour Inc. (“Valour”), a leading issuer of exchange traded products (“ETPs”) that provide simplified access to digital assets, is pleased to announce the signing of a Memorandum of Understanding (“MOU”) with the Nairobi Securities Exchange (“NSE”) and SovFi Inc. (“SovFi”) to facilitate the creation, issuance, and trading of digital asset exchange-traded products (“ETPs”) in the African market.
The NSE, the premier African securities exchange, provides a world-class trading facility for both local and international investors. This collaboration with Valour and SovFi is set to bolster NSE’s position as a leading financial hub in Africa, offering innovative investment opportunities to a diverse range of investors and contributing significantly to the growth of Kenya’s economy.
SovFi aims to provide market liquidity and capital-raising solutions for large sovereign capital market operators. SovFi’s financial instrument development, regulation, and deployment leverage both traditional and token-based finance to deliver low-cost, highly liquid exchange-tradable products.
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Key Objectives of the MOU
The key objectives of the MOU include facilitating the creation, issuance, and trading of digital asset ETPs on the NSE by leveraging Valour’s extensive expertise in digital assets and ETPs. The MOU aims to deploy financial products developed by Valour and SovFi, develop market infrastructure and enhance market access to global capital through tokenized finance primitives and real-world assets.
Expected Outcomes
The expected outcomes of this MOU are significant. For the NSE, the collaboration will enhance product offerings, attract a broader investor base, and benefit from increased trading volumes and market activity, thereby further solidifying its role in the growth of Kenya’s economy and as leading African securities exchange.
Frank Mwiti, CEO of the Nairobi Securities Exchange declared: “We are thrilled to embark on this groundbreaking partnership. This collaboration aligns perfectly with our vision to position the NSE as a leading financial hub in Africa. The passporting of Valour’s ETPs to the NSE will significantly enhance our product offerings. By facilitating the creation, issuance, and trading of digital asset ETPs we are opening new avenues for both local and international investors. This move will not only diversify our market but also contribute to the growth of Kenya’s economy. We look forward to leveraging Valour’s expertise in digital assets and SovFi’s innovative financial solutions to bring cutting-edge investment opportunities to our market”.
Through the MOU, Valour plans to expand its ETP product offerings and market reach in Africa, contributing to increased liquidity and investment opportunities.
Olivier Roussy Newton, Chief Executive Officer of Defi Technologies added: “This MOU marks a significant milestone in Valour’s mission to expand access to digital asset investment products globally. 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. Our collaboration with the NSE and SovFi will enable us to expand our product offerings and market reach in Africa, while contributing our technical knowledge and experience in digital asset-based financial products to develop market infrastructure.”
SovFi will leverage enhanced distribution channels and market penetration opportunities, promoting the adoption of blockchain technology in African financial markets.
Johan Wattenström, Director of SovFi commented: “This collaboration between SovFi, the NSE, and Valour represents a significant step towards expanding access to innovative financial products. SovFi’s expertise in tokenization and blockchain technology will play a crucial role in this collaboration. Along with the NSE’s established market presence and Valour’s ETP expertise, this MOU has the potential to accelerate the adoption of financial products, fostering growth and innovation across the African continent and beyond.”
Collaborative Efforts
The NSE will facilitate the creation, issuance, and trading of digital asset ETPs and onboard Valour as an issuer. Valour will expand its product offerings, utilize ETPs from Valour and affiliate companies, and provide expertise in issuing and managing digital asset-based financial products. Initially, this may include, but is not limited to, ETPs related to Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Hedera (HBAR). SovFi will leverage distribution channels, provide expertise in financial instruments, and support the integration of blockchain technology in the African financial markets.
Digital Asset Adoption in Kenya
Kenya, often hailed as a hub of technological innovation in Africa and aptly nicknamed the “Silicon Savannah,” is one of the continent’s largest digital asset markets. The country has carved a unique niche in Africa’s burgeoning Web3 landscape, driven by a tech-savvy population, a vibrant mobile money ecosystem, and a growing entrepreneurial spirit. With an 85% smartphone penetration rate, Kenya plays a crucial role in the Web3 evolution. It ranks as the largest cryptocurrency market in East Africa and is among the top five on the continent. According to a report by CoinGecko, Kenya was ranked 15th globally in terms of interest in cryptocurrencies in 2023. In Kenya, cryptocurrencies are increasingly used for practical applications like remittances, e-commerce payments, and digital content creation, not just as investment or speculative assets. These advancements highlight the growing adoption of digital assets and their potential to transform Kenya’s financial landscape.
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