The Abu Dhabi Securities Exchange (ADX) has announced the launch of the pricing stage for the MENA region’s first distributed ledger technology (DLT)-based digital bond, issued by First Abu Dhabi Bank (FAB) and enabled by HSBC Orion, marking a key milestone in the region’s push towards financial innovation.
The bond — structured using blockchain technology and listed on ADX — will be made available on HSBC Orion, a market-leading digital assets platform operated by the Central Moneymarkets Unit (CMU) in Hong Kong.
This initiative represents a strategic collaboration between ADX, FAB, and HSBC, and reinforces Abu Dhabi’s commitment to developing a diversified, technology-driven capital market.
“The successful issuance of MENA’s first blockchain-based digital bond, in close collaboration with FAB and HSBC, marks a defining moment in our journey to transform capital markets through innovation,” said Abdulla Salem Alnuaimi, group CEO of ADX.
Key milestone for ADX
“ADX was central in facilitating this milestone, ensuring the bond’s seamless integration with existing post-trade infrastructure and compatibility with global settlement standards.”
Global investors can access the digital bond through accounts held with CMU, Euroclear, and Clearstream, either directly via HSBC Orion or through their existing custodians. The product will provide operational efficiencies, faster settlement cycles, lower counterparty risk, enhanced security, and improved transparency — key benefits of blockchain-based fixed income instruments.
“This initiative not only expands access to institutional-grade digital instruments, but also lays the foundation for a broader class of tokenised assets, including green bonds, sukuk, and real estate-linked products,” Alnuaimi added. “It reinforces Abu Dhabi’s position as a leading global financial centre.”
Lars Kramer, group CFO at First Abu Dhabi Bank, said: “This milestone marks a significant advancement in our innovation journey, establishing FAB as the issuer for the first blockchain-based digital bond in the MENA region.
“Together with ADX and HSBC, we are setting new benchmarks in efficiency, transparency, and security, while aligning with the UAE’s progressive regulatory framework.”
HSBC acted as sole global coordinator, lead manager, and bookrunner on the transaction. Mohamed Al Marzooqi, CEO, UAE at HSBC Bank Middle East, said: “The successful launch of MENA’s first digital bond on ADX using HSBC Orion shows how we are transforming the promise of tokenisation into reality for our region. By combining our global experience with trusted local partners, ADX and FAB, we’re helping bolster the region’s capital markets.”
