Abu Dhabi Securities Exchange (ADX), the largest exchange in the UAE and second-largest exchange in the Middle East North Africa (MENA), has taken the first steps to list the first DLT/blockchain-based bond in the MENA region. It will launch the product in cooperation with HSBC using its Orion platform.
The blockchain-enabled bond will be issued by the First Abu Dhabi Bank (FAB), which also recently announced it is working to issue an AED stablecoin.
As per the press release, the upcoming blockchain-enabled digital bond listing represents a landmark step in ADX’s mission to lead financial innovation and support Abu Dhabi’s digital transformation agenda.
ADX taps HSBC and FAB in digital bond launch
The Blockchain-enabled bond is powered by HSBC Orion, which is operated by the Central Moneymarkets Unit (CMU) in Hong Kong and structured with support from leading international law firms. This will allow global investors to access the digital bond through accounts held with CMU Euroclear and Clearstream, onboarding onto HSBC Orion as a direct participant, or via their existing custodian who can participate through one of the above options.
ADX considers this an introduction to tokenized finance. Digital bonds, fixed-income securities issued and recorded on blockchain technology, offer operational efficiencies, improved settlement cycles, reduced counterparty risk, improved security and enhanced transparency for institutional investors.
Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX, stated that this marked a defining moment in transforming capital markets through innovation by ensuring the bond’s seamless integration with existing post-trade infrastructure and compatibility with global settlement standards.
He added, “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.”
Additionally, Lars Kramer, Group Chief Financial Officer at First Abu Dhabi Bank (FAB), noted that this is a milestone for FAB as it becomes the first issuer of a blockchain-based digital bond in MENA.
He stated, “By transforming traditional settlement processes into seamless digital workflows, we are not only advancing FAB’s digital transformation but also supporting investors navigate the global digital assets landscape. This bond issuance accelerates the development of a robust digital capital markets ecosystem in the UAE.”
HSBC Orion facilitated the European Investment Bank’s first digital bond
Speaking on behalf of HSBC, Mohamed Al Marzooqi, Chief Executive Officer, UAE, HSBC Bank Middle East Limited said he believes that the launch using HSBC Orion shows how the bank is transforming the promise of tokenization into a reality that will bolster the MENA region’s capital markets and make them more transparent, efficient and accessible to investors.
Since its launch, HSBC Orion has led the way in the digitalization of capital market infrastructure. It facilitated the launch of the European Investment Bank’s first digital bond in pound sterling, and the world’s first multi-currency digital bond offering as well as the largest digital bond issuance for the HKSAR Government.
HSBC is also the first bank in the world to offer tokenized ownership in physical gold.
