emirates7 - The Abu Dhabi Securities Exchange (ADX) has initiated the pricing phase for the region’s first-ever bond issuance based on distributed ledger technology (DLT), marking the beginning of its listing process.
This groundbreaking digital bond is being issued by First Abu Dhabi Bank (FAB) through HSBC Orion, a leading digital assets platform. The listing underscores ADX’s commitment to advancing financial innovation and contributing to Abu Dhabi’s broader digital transformation strategy.
The initiative is the product of a strategic partnership between ADX, FAB, and HSBC, merging regional financial expertise with global leadership in digital issuance. HSBC Orion, managed by the Central Moneymarkets Unit (CMU) in Hong Kong, serves as the digital issuance platform, with legal structuring supported by prominent international law firms to ensure strong governance standards.
Global investors will be able to access the digital bond via accounts held with CMU, Euroclear, or Clearstream. They can participate directly through HSBC Orion or indirectly through custodians connected to these systems.
This digital bond listing adds to ADX’s expanding portfolio of financial instruments and highlights its pioneering role in introducing tokenised financial products to the market.
Digital bonds, which are fixed-income instruments recorded on blockchain, provide several advantages for institutional investors—including faster settlement, greater operational efficiency, reduced counterparty risk, enhanced security, and improved transparency.
HSBC served as the sole global coordinator, lead manager, and bookrunner for the transaction, playing a pivotal role in bringing blockchain-based bond issuance to the MENA region.
Abdulla Salem Alnuaimi, CEO of ADX, stated that the successful issuance represents a milestone in ADX’s drive to modernise capital markets through innovation. He emphasized that ADX played a crucial role in ensuring seamless integration of the bond with current post-trade systems and global settlement standards.
FAB’s Group CFO Lars Kramer noted that the collaboration sets new benchmarks for efficiency, transparency, and security, while aligning with the UAE’s forward-looking regulatory environment.
Mohamed Al Marzooqi, CEO of HSBC Bank Middle East Limited, highlighted that the launch of the region’s first digital bond using HSBC Orion is a major step in realizing the potential of tokenisation in the MENA region.
Designed for compatibility with international settlement systems, the bond effectively bridges traditional capital markets with cutting-edge digital issuance models, facilitating broader institutional access.
This groundbreaking digital bond is being issued by First Abu Dhabi Bank (FAB) through HSBC Orion, a leading digital assets platform. The listing underscores ADX’s commitment to advancing financial innovation and contributing to Abu Dhabi’s broader digital transformation strategy.
The initiative is the product of a strategic partnership between ADX, FAB, and HSBC, merging regional financial expertise with global leadership in digital issuance. HSBC Orion, managed by the Central Moneymarkets Unit (CMU) in Hong Kong, serves as the digital issuance platform, with legal structuring supported by prominent international law firms to ensure strong governance standards.
Global investors will be able to access the digital bond via accounts held with CMU, Euroclear, or Clearstream. They can participate directly through HSBC Orion or indirectly through custodians connected to these systems.
This digital bond listing adds to ADX’s expanding portfolio of financial instruments and highlights its pioneering role in introducing tokenised financial products to the market.
Digital bonds, which are fixed-income instruments recorded on blockchain, provide several advantages for institutional investors—including faster settlement, greater operational efficiency, reduced counterparty risk, enhanced security, and improved transparency.
HSBC served as the sole global coordinator, lead manager, and bookrunner for the transaction, playing a pivotal role in bringing blockchain-based bond issuance to the MENA region.
Abdulla Salem Alnuaimi, CEO of ADX, stated that the successful issuance represents a milestone in ADX’s drive to modernise capital markets through innovation. He emphasized that ADX played a crucial role in ensuring seamless integration of the bond with current post-trade systems and global settlement standards.
FAB’s Group CFO Lars Kramer noted that the collaboration sets new benchmarks for efficiency, transparency, and security, while aligning with the UAE’s forward-looking regulatory environment.
Mohamed Al Marzooqi, CEO of HSBC Bank Middle East Limited, highlighted that the launch of the region’s first digital bond using HSBC Orion is a major step in realizing the potential of tokenisation in the MENA region.
Designed for compatibility with international settlement systems, the bond effectively bridges traditional capital markets with cutting-edge digital issuance models, facilitating broader institutional access.