The Abu Dhabi Securities Exchange (ADX) has kicked off the pricing process for what’s set to be the MENA region’s first digitally native bond issued on distributed ledger technology (DLT).

The bond, issued by First Abu Dhabi Bank (FAB), will be listed on ADX and launched through HSBC’s Orion platform — a blockchain-based digital assets infrastructure operated via the Central Moneymarkets Unit (CMU) in Hong Kong.

The transaction stems from a three-way collaboration between ADX, HSBC, and FAB, combining local market infrastructure with HSBC’s experience in digital issuance. Global investors will be able to access the bond through accounts with CMU, Euroclear, or Clearstream, or via their existing custodians.

Abdulla Salem Alnuaimi, Group CEO of ADX, described the move as “a defining moment in our journey to transform capital markets through innovation,” adding that the exchange ensured the bond’s smooth integration with existing post-trade infrastructure and international settlement systems.

The new bond expands ADX’s product offering and reflects growing institutional interest in tokenised fixed-income products. These digital bonds promise streamlined settlement, stronger security, and more transparency — all increasingly in demand from large investors.

HSBC is acting as sole global coordinator, lead manager, and bookrunner for the deal. Lars Kramer, CFO at FAB, said the issuance “accelerates the development of a robust digital capital markets ecosystem in the UAE,” aligning with FAB’s broader digital strategy.

Mohamed Al Marzooqi, CEO for UAE at HSBC Bank Middle East, said: “By combining global experience with trusted local partners, we’re helping make the region’s capital markets more efficient and accessible.”

The launch adds to a growing track record for HSBC Orion, which has handled several digital bond issuances in recent months, including a digital treasury note from Luxembourg and a €100 million offering from the European Investment Bank settled via a wholesale CBDC. This latest issuance marks Orion’s first foray into the Middle East.

FAB, meanwhile, is no stranger to blockchain. Beyond this bond issuance, the bank is developing a Dirham-backed stablecoin and is already integrated with JPMorgan’s Kinexys platform for cross-border payments. It also participated in China’s digital RMB pilot and the central bank-backed mBridge project alongside monetary authorities in Saudi Arabia, Thailand, Hong Kong, and the UAE.

HSBC operates Orion across two hubs — Hong Kong and Luxembourg — and this issuance will use the Hong Kong platform, benefiting from CMU’s links to Clearstream and Euroclear.