- ADX provides an overview of the first blockchain bond of Mena, published by FAB on HSBC Orion platform
- Blockchain -Bond improves market efficiency, transparency and access to investors
- Strategic ADX, HSBC, FAB Partnership Signals shift to digital capital markets
The Abu Dhabi Securities Exchange (ADX) is preparing for the very first blockchain-based digital bond in the Middle East and North Africa (Mena).
Published by First Abu Dhabi Bank (FAB), the largest bank in the country, and powered by HSBC’s Orion Digital Asset Platform, integrates the Listing Distributed Ledger Technology (DLT) directly into capital market infrastructure.
Partnership for innovation
This milestone comes as a result of strategic cooperation between ADX, HSBC and FAB. Each party plays a crucial role in shaping the structure and distribution of the binding. HSBC acted as the only global coordinator, head manager and bookrunner.
FAB has issued the digital bond using HSBC Orion, a platform that is managed by the Central Monemarkets Unit (CMU) from Hong Kong. The development of the bond included top -class international law firms, which means that compliance with governance and regulations comply with global standards.
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Mohamed Al Marzooqi, CEO of HSBC -VAE, emphasized how this initiative turns tokenization into a practical solution for institutional investors in the region. In addition, this mention shows that ADX can integrate the capacity of ADX and at the same time ensure compatibility with legacy settlement systems such as Euroclear and Clearstream. Global investors have access to bond through direct participation in HSBC Orion or through their current preservators.
Advantages of a digital bond
The integration of blockchain technology offers clear benefits for bond markets. By including transactions on a distributed ledger, digital bonds can make faster settlement cycles possible, reduce the risk of the counterparty and offer a much greater transparency for all participants. The technology also helps to lower operational costs and improves the security of investors.
“This digital bond is in line with the progressive regulatory landscape of the VAE, while the bar is increased for efficiency and trust,” said Lars Kramer, group CFO at First Abu Dhabi Bank.
Global investors have access to the bond by participating directly in the HSBC Orion platform or through their existing managers, because the digital active is fully compatible with traditional settlement systems such as Euroclear and Clearstream.
Related: Abu Dhabi launches a large project with Agile Dynamics for quantum -safe blockchain
Set a new regional standard
This list is about more than one financial product; It is a fundamental step in the direction of modernizing the capital markets of the region.
ADX’s Group CEO, Abdulla Salem Alnuaimi, noticed on the central role of the exchange in guaranteeing the smooth integration of the bond with posthandel infrastructure. He repeated ADX’s wider mission to modernize capital markets through innovative financial instruments.
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