What You Need to Know:

• The Abu Dhabi Securities Exchange (ADX) is preparing to launch the first blockchain-based bond in the MENA region, issued by First Abu Dhabi Bank (FAB) leveraging HSBC’s digital platform, Orion.
• This initiative is part of Abu Dhabi’s strategy to lead the tokenization of real-world assets, a sector anticipated to see substantial growth in the near future.

The ADX announced on Thursday its plans to introduce a blockchain-based bond, indicating significant developments in the region’s tokenized finance sector. The bond, which will be issued by First Abu Dhabi Bank (FAB) and utilize HSBC’s digital asset issuance technology, will be recorded and managed through distributed ledger technology, enhancing the investment experience through improved speeds and transparency.

The launch is expected to democratize access for global institutional investors via respected securities settlement systems such as Euroclear and Clearstream. This approach underpins Abu Dhabi’s commitment to be a leading player in the tokenized asset market, which could reach trillions of dollars as it evolves.

“This initiative not only expands access to institutional-grade digital instruments but also lays the foundation for a broader class of tokenized assets — including green bonds, sukuk, and real estate-linked products,” said Abdulla Salem Alnuaimi, CEO of ADX Group.
Translation: “Esta iniciativa no solo amplía el acceso a instrumentos digitales de grado institucional, sino que también sienta las bases para una clase más amplia de activos tokenizados, incluidos bonos verdes, sukuk y productos vinculados a bienes raíces.”