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Canadian firm seeks approval to list crypto assets on NSE
If approved, the exchange-traded products are set to be cross-listed on the NSE under a regulated investment vehicle, which will be under the watch of the CMA.
The Canada-based decentralised finance company Valour Inc has applied to the Capital Markets Authority (CMA) for approval to introduce crypto asset derivatives on the Nairobi Securities Exchange (NSE) in August this year.
Approval from the markets regulator would give Kenyan retail and institutional investors exposure to crypto assets such as Bitcoin and Ethereum through exchange-traded products (ETPs).
ETPs, also known as exchange traded funds (ETFs), are instruments that track an underlying security, index or financial products and are traded on exchanges like stocks.
If approved, the ETPs are set to be cross-listed on the local bourse under a regulated investment vehicle, which will be under the watch of the CMA.
The regulator noted that Valour has not yet submitted its proposal to enter the Kenyan market, but that initial discussions were underway.
“The Capital Markets Authority would like to clarify that the proposed application by Valour has not been submitted to the Authority for consideration and approval. However, the Authority has had initial engagements with the company on the possibility of bringing the product to the market,” the CMA said in a statement to the Business Daily.
Valour has appointed GulfCap Investment Bank, an arm of the Gulf African Bank, to act as the key transaction advisor for the cross-listing.
The investment bank is expected to provide end-to-end support for the cross-listing, including regulatory coordination, due diligence, documentation, investor engagement and listing execution in line with CMA and NSE guidelines.
The ETPs are already cross-listed on other exchanges, including in Germany, Sweden, France and the Netherlands.
Valour is part of the asset management arm of DeFi (Decentralised Finance) Technologies Inc, which is also domiciled in Canada.
“We are proud to partner with GulfCap Investment Bank for this important initiative. Their proven track record in cross-border capital markets transactions and deep local expertise makes them the ideal advisor as we enter the Kenyan market,” said Andrew Forson, the president of Defi Technologies and chief growth officer of Valour.
GulfCap Investment Bank says its collaboration with Valour aligns with its goal of expanding financial inclusion by introducing regulated alternative investment products that resonate with the digital-first generation of Kenyan investors.
“Kenya is already one of Africa’s most active digital assets markets by adoption, and this initiative places us firmly at the intersection of capital markets evolution and fintech disruption,” said the founder and chief executive officer of GulfCap Investment Bank Saud Shahbal.
