Abu Dhabi Securities Exchange (ADX) partners with HSBC and FAB to launch MENA's First Digital Bond

Al Bawaba

04-07-2025

Abu Dhabi Securities Exchange (ADX), the largest exchange in the UAE and second largest exchange in the Middle East North Africa (MENA), has announced the commencement of the pricing stage as the initial step toward listing the first-ever, distributed ledger technology (DLT)-based bond in the region. Issued by First Abu Dhabi Bank (FAB) using HSBC Orion , a market-leading digital assets platform, the upcoming bond listing represents a landmark step in ADX's mission to lead financial innovation and support Abu Dhabi's digital transformation agenda.The upcoming listing is the result of strategic collaboration between ADX, HSBC, and FAB, combining regional financial leadership with global expertise in digital issuance. It is powered by HSBC Orion, which is operated by the Central Moneymarkets Unit (CMU) in Hong Kong, and structured with support from leading international law firms, reflecting the high standard of governance.Global investors can access the digital bond through accounts held with CMU, Euroclear and Clearstream, onboarding onto HSBC Orion as direct participant, or via their existing custodian who can participate through one of the above options. Introducing the digital bond into ADX's growing list of financial products supports its broader ambition to offer innovative financial instruments and signifies the Exchange's pioneering role in introducing tokenised finance.Digital bonds, fixed-income securities issued and recorded on blockchain technology, offer operational efficiencies, improved settlement cycles, reduced counterparty risk, improved security and enhanced transparency for institutional investors.HSBC acted as the sole global coordinator, lead manager and bookrunner on the transaction, and played a central role in bringing the end-to-end blockchain-based issuance to the MENA region. Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX, said: 'The successful issuance of MENA's first blockchain-based digital bond, in close collaboration with FAB and HSBC, marks a defining moment in our journey to transform capital markets through innovation. ADX was central in facilitating this milestone, ensuring the bond's seamless integration with existing post-trade infrastructure and compatibility with global settlement standards.'ADX Group CEO added: 'This initiative not only expands access to institutional-grade digital instruments, but also lays the foundation for a broader class of tokenized assets—including green bonds, sukuk, and real estate-linked products. It reinforces Abu Dhabi's position as a leading global financial centre. It aligns with the UAE's national agenda to build a diversified, technology-driven capital market anchored in transparency, resilience, and long-term growth.'Lars Kramer, Group Chief Financial Officer at First Abu Dhabi Bank (FAB), said: 'This milestone marks a significant advancement in our innovation journey, establishing FAB as the issuer for the first blockchain-based digital bond in the MENA region. Together with ADX and HSBC, we are setting new benchmarks in efficiency, transparency, and security, while aligning with the UAE's progressive regulatory framework. By transforming traditional settlement processes into seamless digital workflows, we are not only advancing FAB's digital transformation but also supporting investors navigate the global digital assets landscape. This bond issuance accelerates the development of a robust digital capital markets ecosystem in the UAE.'Mohamed Al Marzooqi, Chief Executive Officer, UAE, HSBC Bank Middle East Limited, said: 'The successful launch of MENA's first digital bond on ADX using HSBC Orion shows how we are transforming the promise of tokenisation into reality for our region. By combining our global experience with trusted local partners, ADX and FAB, we're helping bolster the region's capital markets - making them more transparent, efficient and accessible to investors. This is a significant milestone towards a future where digital assets become a mainstream part of the Middle East's financial landscape.'
Designed to ensure compatibility with global settlement infrastructure, the bond integrates digital technology with existing post-trade infrastructure, bridging traditional markets with next-generation issuance models and supporting institutional access.