In a pioneering move for the region, the Abu Dhabi Securities Exchange (ADX) has announced the launch of the first blockchain-enabled digital bond in the Middle East and North Africa (MENA). This innovative issuance is being introduced in collaboration with HSBC and First Abu Dhabi Bank (FAB), leveraging HSBC’s Orion platform to transform capital markets through distributed ledger technology (DLT).
A Major Step in Tokenized Finance
This digital bond represents more than just a financial instrument—it’s a strategic leap into tokenized finance, a rapidly growing field that uses blockchain to record ownership, streamline transactions, and enhance security. ADX sees this as the foundation for a broader class of digital assets in the UAE, including tokenized green bonds, sukuk, and real estate-linked securities.
The upcoming digital bond will be issued by FAB, the UAE’s largest bank, which also recently revealed plans to create an AED-pegged stablecoin. This positions FAB as a leader in financial innovation in the Gulf region, committed to evolving beyond traditional models.
HSBC Orion Powers the Bond Infrastructure
The blockchain bond will be powered by HSBC Orion, a platform operated under the Central Moneymarkets Unit (CMU) in Hong Kong. The structure of the bond has been developed with the support of top international law firms, ensuring adherence to global regulatory standards.
Through HSBC Orion, global investors will be able to access the digital bond using accounts held with CMU, Euroclear, or Clearstream. Investors may also onboard as direct participants on Orion or use their existing custodians to access the bond. This approach not only ensures international accessibility but also aligns with ADX’s ambition to integrate digital assets within the existing global post-trade and settlement infrastructure.
A Transformative Moment for ADX and the Region
According to Abdulla Salem Alnuaimi, Group CEO of ADX, this initiative represents a “defining moment” for the UAE’s capital markets. “By embracing cutting-edge blockchain solutions, we’re enhancing operational efficiency and transparency while staying compatible with international post-trade systems,” he said.
Alnuaimi emphasized that this bond lays the groundwork for future digital instruments, enabling broader access to institutional-grade tokenized assets. It also supports Abu Dhabi’s larger digital transformation agenda, aiming to position the emirate as a hub for fintech and next-generation capital markets.
First Abu Dhabi Bank Sets Regional Benchmark
As the issuing entity, First Abu Dhabi Bank (FAB) is the first in MENA to offer a blockchain-based bond, marking a major milestone in the region’s financial history. Lars Kramer, Group CFO at FAB, described the launch as a turning point for FAB’s digital journey.
“Transforming traditional bond settlements into seamless digital workflows allows us to reduce counterparty risk, speed up transaction time, and support investor confidence,” said Kramer. He added that this bond will help develop a more efficient and robust digital capital market in the UAE, giving investors better tools to navigate the evolving digital asset landscape.
HSBC’s Global Leadership in Digital Bonds
Mohamed Al Marzooqi, CEO of HSBC Bank Middle East Limited (UAE), echoed the enthusiasm, stating that the launch highlights the power of tokenization in driving capital market evolution across MENA.
“HSBC Orion has already enabled significant firsts globally, including the European Investment Bank’s digital bond and the HKSAR Government’s largest digital issuance,” he said. “Now, we’re proud to bring that same innovation to Abu Dhabi.”
HSBC has also made headlines as the first global bank to offer tokenized ownership of physical gold, underlining its commitment to creating tangible, real-world applications of blockchain finance.
A New Era for Capital Markets in the UAE
With this landmark move, ADX, FAB, and HSBC are ushering in a new era of capital markets in the UAE and the broader MENA region. By combining blockchain technology with global standards and regional leadership, this initiative paves the way for future innovation in digital securities, tokenized finance, and institutional-grade asset management.
The blockchain bond is expected to catalyze investor confidence, streamline financial operations, and open up new channels for global capital participation—a promising step forward in the digital future of finance in the Arab world.
