- ADX lists MENA’s first blockchain bond issued by Fab on the HSBC Orion platform
- Blockchain bonds enhance market efficiency, transparency and access to investors
- Strategic ADX, HSBC and FAB Partnership Signals Shift to Digital Capital Markets
The Abu Dhabi Stock Exchange (ADX) is preparing to list the first ever blockchain-based digital debt in the Middle East and North Africa (MENA).
Issued by First Abu Dhabi Bank (FAB), the country’s largest bank, and powered by HSBC’s Orion Digital Asset platform, the list integrates distributed ledger technology (DLT) directly into capital market infrastructure.
Fake partnerships for innovation
This milestone comes as a result of strategic collaborations between ADX, HSBC and FAB. Each party plays a pivotal role in shaping the structure and distribution of bonds. HSBC served as the sole global coordinator, lead manager and Bookrunner.
FAB issued digital bonds using HSBC Orion, a platform run by Hong Kong’s Central Money Market Unit (CMU). In the development of bonds, international law firms have become first-class, ensuring governance and regulatory compliance meets global standards.
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Mohamed Al Marzooqi, CEO of HSBC UAE, highlighted how the initiative will turn tokenization into a practical solution for local institutional investors. Additionally, this list shows the ability to integrate ADX’s digital tools, ensuring compatibility with legacy payment systems such as EuroClear and ClearStream. Global investors can access bonds through direct participation in HSBC Orion or through current custodians.
The Benefits of Digital Bonds
The integration of blockchain technology offers clear benefits to the bond market. By recording transactions in a distributed ledger, digital bonds allow for faster payment cycles, reduce counterparty risks, and provide far more transparency to all participants. This technology also helps reduce operational costs and improve investor security.
“This digital bond is consistent with the UAE’s progressive regulatory landscape, while raising standards for efficiency and reliability.” said Lars Kramer, the first group CFO of Abu Dhabi Bank.
Global investors can access bonds either by participating directly on the HSBC Orion platform or through existing custodians. This is because digital assets are fully compatible with traditional payment systems such as Euroclear and Clearstream.
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Setting new regional standards
This list is more than a single financial product. This is a fundamental step in modernizing the regional capital market.
ADX Group CEO Abdulla Salem Alnuaimi has highlighted the central role of exchanges in ensuring smooth integration of bonds with post-trade infrastructure. He reiterated ADX’s broader mission to modernize capital markets through innovative financial products.
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