Valour Inc. has tapped GulfCap Investment Bank (GCIB) as its transaction advisor to cross-list its suite of exchange-traded products (ETPs) on the Nairobi Securities Exchange (NSE). Subject to approval by Kenya’s Capital Markets Authority (CMA), the move will enable Valour’s ETPs to trade in Kenyan shillings, giving East African investors regulated exposure to leading digital assets through local capital markets (PR Newswire).
Strategic Partnership: Bridging TradFi and DeFi
On May 15, 2025, DeFi Technologies Inc. — Valour’s parent and a pioneer in blending traditional finance with decentralized finance — published a press release confirming the engagement of GCIB for the NSE cross-listing (DeFi). GCIB, one of the few investment banks licensed by the CMA to advise on such transactions, will oversee:
- Regulatory coordination with the CMA and NSE
- Due diligence on each ETP structure
- Documentation drafting and submission
- Investor engagement programs in Nairobi, Mombasa, and Kisumu
- Listing execution in accordance with NSE rulebooks
This end-to-end support is designed to navigate Kenya’s evolving digital-assets framework while ensuring governance, transparency, and investor protection remain front and center.
Who Is Valour?
Valour Inc. (a subsidiary of DeFi Technologies) offers over 65 fully-hedged digital asset ETPs, currently listed on leading European exchanges including Xetra, Spotlight, and Euronext (Paris & Amsterdam). These ETPs provide investors exposure to major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and a diversified basket of DeFi tokens — all through regulated, exchange-traded vehicles.
Since its Nasdaq debut under the ticker DEFT on May 12, 2025, DeFi Technologies has solidified its credentials as a global fintech innovator, reporting C$62.7 million in Q1 2025 revenues and C$43 million in net income (DeFi). Valour’s expansion into Africa underscores the group’s ambition to bridge capital markets and decentralized networks worldwide.
GulfCap Investment Bank: Local Expertise
Founded in 2018, GulfCap Investment Bank has quickly become a leading advisory house in Kenya, specializing in cross-border capital markets, mergers and acquisitions, and structured finance. Under CEO Saud Shahbal, GCIB has:
- Advised on KES 40 billion in bond issuances since 2022
- Structured Kenya’s first Sharia-compliant sukuk offering
- Partnered with sovereign wealth funds to channel $500 million into infrastructure
“Kenya is one of Africa’s most active digital-assets markets by adoption,” Shahbal commented, emphasizing GCIB’s role in “expanding the frontier of financial inclusion” by bringing alternative investments to the digital-first generation.
Kenyan Digital-Asset Market: Size and Growth
Kenya’s crypto ecosystem has exploded in recent years. According to a 2022 report, Kenyans transacted KES 2.4 trillion (US$18.6 billion) in digital assets during the 2021–22 financial year (CoinGeek). A follow-up UN-backed study suggests over 6 million Kenyans now hold crypto assets, representing roughly 10% of the population (Fintech News Africa).
Moreover, Kenya ranks 21st globally in the Chainalysis Global Crypto Adoption Index and second in Africa for peer-to-peer trading volume (TechPression). Web traffic to crypto-exchange sites is the continent’s highest outside South Africa, reflecting robust demand and a tech-savvy demographic ethos.
Regulatory Landscape: Toward Clarity
Kenya’s march toward comprehensive crypto regulation has been methodical:
- March 2024: A Technical Working Group (TWG) — chaired by the National Treasury and including CMA, CBK, and the Financial Reporting Centre — was tasked with drafting policy recommendations for virtual-asset regulation.
- September 2024: TWG finalized its framework, proposing licensing regimes for exchanges, custodians, and VASPs.
- April 2025: Full implementation of FATF Recommendation 15 and related rules on anti-money-laundering/terror-financing came into force.
Benefits for Kenyan Investors
Cross-listing Valour’s ETPs on the NSE offers multiple advantages:
- Local-currency trading (KES), eliminating FX risk for domestic investors
- Regulated access to top digital assets without needing offshore accounts
- Exchange safeguards, including investor-protection funds and KYC/AML oversight
- Portfolio diversification, as ETPs track baskets of tokens or specific sectors (e.g., DeFi, metaverse)
Early data from the NSE’s growth report indicates retail participation in new listings can reach 40% of total volumes within six months, suggesting a significant appetite for innovative products.
A Blueprint for Emerging Markets
Valour’s Kenyan foray aligns with DeFi Technologies’ broader “emerging-markets” playbook:
- April 2025: Partnership with SovFi and the NSE to design the Kenya Digital Exchange (KDX), a tokenization platform for real-world assets (PR Newswire).
- May 2025: Launch of a regulated, bank-issued stablecoin in partnership with Fire Labs, targeting 105% reserve backing and institutional yield tokens (Stock Titan).
Success in Kenya could pave the way for similar cross-listings on the Johannesburg Stock Exchange or Nigerian Exchange, leveraging local advisors to gain rapid market entry.
Challenges and Considerations
Despite the promise, a few hurdles loom:
- Regulatory flux: Final rules for staking services, custody standards, and secondary market reporting remain under consultation.
- Tax regime: The 3% digital-asset tax levied on traders is seen by some as stifling adoption without corresponding clarity on enforcement.
- Market education: Retail investors need robust financial-literacy programs to understand ETP risks, such as tracking errors and counterparty credit risk.
GCIB and Valour have proposed joint workshops, online tutorials, and investor-protection hotlines to address these gaps, working closely with CMA and industry associations.
Industry Reaction
Market analysts have broadly applauded the partnership:
- Standard Chartered’s fintech research arm notes Kenya’s “unique confluence” of mobile-money penetration (over 90% via M-Pesa), youthful demographics, and rising smartphone adoption as ideal for ETP uptake (Fintech News Africa).
- Global consultancy KPMG projects digital-asset AUM in Africa could double to US$60 billion by 2027, driven primarily by East African innovations and regulatory modernization.
However, some caution that only a fraction of Kenya’s 53 million population — perhaps 5–7% — will engage with ETPs by 2026, underscoring the need for sustained outreach.
Looking Ahead
Key milestones to watch in H2 2025:
- CMA approval: Expected by Q3, subject to finalization of listing documents and stakeholder consultations.
- First day of trading: Anticipated in November, potentially featuring a digital-innovation-themed market bell ceremony.
- Retail onboarding: NSE aims to integrate ETP applications into its mobile app, boosting accessibility for first-time investors.
- Product expansion: Launch of “Valour Digital Infrastructure ETP” targeting tokens linked to blockchain-infrastructure projects.
Should Valour’s cross-listing prove successful, it will mark a watershed moment in African capital-markets evolution — a tangible bridge between old-world securities and new-world digital assets.
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Photo source: Google
By: Montel Kamau
Serrari Financial Analyst
27th May, 2025
