HSBC is working with ADX and FAB to introduce the first digital native bond in the MENA region to the blockchain, adding to the growing portfolio of HSBC’s digital bond issuance on the Orion platform.
HSBC has partnered with the Abu Dhabi Stock Exchange and First Abu Dhabi Bank to launch the first digital native bond in the MENA region using distributed ledger technology. As reported by the Middle Eastern Economy, ADX has already begun its product pricing process.
The bond, issued by FAB, will be launched through HSBC’s Orion platform, a blockchain-based digital asset infrastructure. Orion is operated through Hong Kong’s Central Money Market Unit and also operates in Luxembourg, but the issue uses the Hong Kong platform to enable seamless access to global investors through the integration of EuroClear and ClearStream.
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Current collaboration with ADX and Fab Marks Orion’s first entry into the Middle East. However, it is not the first digital bond launched through the platform. Orion previously settled through a wholesale central bank digital currency, supporting the launch of a digital treasury note from Luxembourg and the 100 million euros of digital bonds issued by the European Investment Bank.
Additionally, Orion supported HKMA’s groundbreaking multi-communication green bond issue in February last year. There, the Hong Kong government issued 6 billion equivalent digital bonds to HKD, CNH, USD and Eur. The issuance was resolved using Atomic Delivery vs Salary, reducing settlement time from t+5 to t+1, opening up access to over 50 global investors.
Apart from bonds, the platform is also used to launch tokenized gold for retail investors.
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