Nairobi Securities Exchange (NSE) Joins Hedera Governing Council to Expedite the Adoption of Tokenized Securities within Kenya's Capital Markets

Nairobi Securities Exchange (NSE), the best-performing market in Africa has joined the decentralized Hedera Governing Council

The Nairobi Securities Exchange (NSE), which has been named the best performing market in Africa for the first nine months of 2024 by the Morgan Stanley Capital International (MSCI), has joined the decentralized Hedera Governing Council. This move is set to expedite the adoption of tokenized securities within Kenya's capital markets.

As the 32nd member of the Hedera Council, the NSE will now be part of a global network of companies such as Google, IBM, and LG that oversee Hedera's governance. This collaboration will integrate digital and tokenized assets into the mainstream.

Tokenization involves converting real assets like stocks, bonds, and commodities into digital tokens on a blockchain. The partnership also aims to modernize Africa's financial markets through Hedera's advanced Distributed Ledger Technology (DLT). Multiple members can maintain their own identical copy of a shared ledger thanks to Hedera's DLT.

The exchange will gain several advantages from Hedera's Hashgraph Consensus, which was created by Leemon Baird, co-founder and chief scientist of Hedera. These advantages include:

* Secure, real-time, and low-cost payment settlement, enabling users to transact in their preferred cryptocurrency.

* Decentralized, scalable, and publicly verifiable data logs ensure that all transactions and activities can be audited and verified without relying on a central authority.

* The network can achieve an impressive throughput of over 10,000 transactions per second through the mechanism. This is made possible by a unique algorithm that prioritizes speed and efficiency.

Hedera is continuously expanding its ecosystem, offering a range of applications and developer tools. Recently, LayerZero (ZRO), a technology that enables applications to move data across blockchains, was integrated by Hedera into its network to enhance the Hedera Token Service (HTS). This will significantly boost the NSE's offerings by making the exchange a hub for digital asset trading.

"The NSE has a proven track record and strong foundations in Africa. As one of the largest economies in Sub-Saharan Africa, Kenya presents an opportunity to accelerate the adoption of digital assets," said Bill Miller, Co-Chair of the Membership Committee for Hedera, in the report.

"With a market capitalization of about $12.65 billion, daily transaction volumes exceeding $100 million, and 63 listed companies across 11 sectors, the NSE provides an ideal foundation for enhancing global capital markets. Hedera's advanced technology will enable the NSE to enhance global liquidity and improve access to financial services for African investors, while also strengthening its presence in the digital asset space."

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