ABU DHABI: The Abu Dhabi Securities Exchange (ADX), recognised as the second-largest financial market in the Middle East and North Africa (MENA) region, is set to pioneer a significant advancement in the financial industry by listing the first-ever distributed ledger technology (DLT)-based bond within the MENA region.
The innovative bond issuance, conducted by First Abu Dhabi Bank (FAB), leverages HSBC Orion, a cutting-edge digital assets platform operated by the Central Moneymarkets Unit (CMU) in Hong Kong and supported by leading international legal firms, underscoring the transaction’s robust international credibility and regulatory compliance.
The listing on ADX represents a transformative milestone that enables global investors to access this novel digital bond through accounts maintained with CMU, Euroclear, Clearstream, or via onboarding through HSBC Orion or their existing custodians connected to these entities.
Financial innovation
Digital bonds, which are fixed-income securities recorded on blockchain technology, bring forth numerous operational advantages including enhanced settlement efficiency, shorter settlement cycles, diminished counterparty risk, heightened security, and greater transparency, thereby addressing many of the inefficiencies traditionally associated with fixed-income instruments.
HSBC’s role as the sole global coordinator, lead manager, and bookrunner on this landmark transaction further accentuates its strategic significance in the digital transformation of capital markets.
Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX, highlighted that beyond expanding access to institutional-grade digital instruments, this initiative lays a critical foundation for a diversified ecosystem of tokenised assets extending to green bonds, sukuk, and real estate-linked products, thereby positioning ADX at the forefront of the region’s evolving financial innovation landscape.
