The Abu Dhabi Securities Exchange (ADX) has initiated the pricing phase for the region’s first bond using distributed ledger technology (DLT). Issued by First Abu Dhabi Bank (FAB) with HSBC Orion, this listing marks a significant step in ADX’s goal to lead financial innovation and support Abu Dhabi’s digital transformation agenda. The collaboration between ADX, HSBC, and FAB combines regional financial leadership with global expertise in digital issuance.

Global investors can access this digital bond through accounts held with CMU, Euroclear, and Clearstream. They can also onboard onto HSBC Orion as direct participants or through their existing custodians. This introduction of a digital bond into ADX’s offerings supports its ambition to provide innovative financial instruments and highlights its pioneering role in tokenised finance.

Digital bonds are fixed-income securities issued and recorded on blockchain technology. They offer operational efficiencies, improved settlement cycles, reduced counterparty risk, enhanced security, and greater transparency for institutional investors. These benefits make them an attractive option for modern financial markets.

HSBC played a crucial role as the sole global coordinator, lead manager, and bookrunner for this transaction. It was instrumental in bringing the end-to-end blockchain-based issuance to the MENA region. The use of HSBC Orion reflects a high standard of governance supported by leading international law firms.

Lars Kramer, Group Chief Financial Officer at FAB, stated that their collaboration with ADX and HSBC sets new benchmarks in efficiency, transparency, and security while aligning with the UAE’s progressive regulatory framework. This partnership underscores the importance of strategic alliances in advancing financial innovation.

Abdulla Salem Alnuaimi, Group CEO of ADX, remarked on the significance of this milestone: “The successful issuance of MENA’s first blockchain-based digital bond…marks a defining moment in our journey to transform capital markets through innovation.” His statement highlights ADX’s central role in facilitating this achievement.

Integration with Global Standards

The bond is designed to ensure compatibility with global settlement infrastructure. It integrates digital technology with existing post-trade infrastructure, bridging traditional markets with next-generation issuance models. This integration supports institutional access and aligns with global settlement standards.

Mohamed Al Marzooqi from HSBC Bank Middle East Limited commented on the launch: “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.” His words emphasize the transformative impact of tokenisation in the region.

This development represents a landmark achievement for ADX as it continues to expand its range of financial products. By introducing such innovative solutions, ADX reinforces its commitment to leading financial innovation and supporting Abu Dhabi’s broader economic goals.

With inputs from WAM

Story first published: Thursday, July 3, 2025, 12:07 [GST]