The Abu Dhabi Securities Exchange (ADX) has begun the pricing process for what is reportedly the MENA region’s first distributed ledger technology (DLT)-based digitally native bond.

Issued by First Abu Dhabi Bank (FAB), the bond will be listed on ADX and made available through HSBC’s Orion digital assets platform. 

The transaction is the result of a collaboration between ADX, HSBC, and FAB, combining local market infrastructure with international expertise in digital issuance.  

HSBC Orion, operated by the Central Moneymarkets Unit (CMU) in Hong Kong, provides the underlying digital issuance framework, with the structure supported by international law firms. 

Global investors will be able to access the bond through accounts with CMU, Euroclear and Clearstream, either by becoming direct participants on HSBC Orion or through their existing custodians.  

Abdulla Salem Alnuaimi, group chief executive officer of ADX, said: “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. ADX was central in facilitating this milestone, ensuring the bond’s seamless integration with existing post-trade infrastructure and compatibility with global settlement standards.” 

The introduction of the digital bond adds to ADX’s range of financial instruments and reflects broader market moves toward tokenised fixed income products, which aim to deliver operational efficiencies, faster settlement and enhanced transparency. 

HSBC acted as sole global coordinator, lead manager and bookrunner for the issuance, supporting the end-to-end blockchain-based transaction. 

Lars Kramer, group chief financial officer at First Abu Dhabi Bank (FAB), said: “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.” 

Mohamed Al Marzooqi, chief executive officer, UAE, 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 – making them more transparent, efficient and accessible to investors.” 

Designed to ensure compatibility with global settlement infrastructure, the bond integrates digital technology with existing post-trade systems. This approach aims to bridge traditional capital markets with next-generation issuance models and facilitates institutional investor access through established channels.