Abu Dhabi Securities Exchange (ADX) has announced the start of the pricing stage for the region’s first distributed ledger technology (DLT)-based bond. This marks the initial step toward its upcoming listing.

The digital bond is issued by First Abu Dhabi Bank (FAB) using HSBC Orion, a leading digital assets platform. ADX revealed that the initiative supports its mission to lead financial innovation and promote Abu Dhabi’s digital transformation agenda.

The listing results from a strategic collaboration between ADX, HSBC, and FAB. It brings together regional financial leadership and global digital issuance expertise. HSBC Orion is operated by the Central Moneymarkets Unit (CMU) in Hong Kong and is supported by major international law firms.

ADX reported that global investors will be able to access the digital bond through:

• Accounts held with CMU, Euroclear, or Clearstream
• Onboarding to HSBC Orion as direct participants or through existing custodians

The new digital bond will join ADX’s growing portfolio of financial instruments. This reflects ADX’s commitment to introducing tokenised finance and enhancing market efficiency.

Digital bonds are fixed-income securities issued and recorded using blockchain technology. They offer several benefits, including faster settlement, reduced counterparty risk, enhanced security, and greater transparency for institutional investors.

HSBC acted as the sole global coordinator, lead manager, and bookrunner for the transaction. The bank played a key role in delivering this end-to-end blockchain-based issuance to the MENA region.

ADX CEO Abdulla Salem Alnuaimi stated that the successful issuance represents a major milestone. He emphasized ADX’s role in ensuring seamless integration with post-trade infrastructure and compliance with global settlement standards.

FAB Group CFO Lars Kramer said the bond sets new benchmarks in efficiency, transparency, and security. He added it aligns with the UAE’s progressive regulatory environment.

HSBC UAE CEO Mohamed Al Marzooqi noted that the launch proves the promise of tokenisation is becoming reality in the region.

The bond is designed for full compatibility with international settlement infrastructure. According to ADX, it bridges traditional capital markets with next-generation digital issuance models and broadens institutional access.

Related post

View all