Latest news with #mBridge
Arabian Post
06-07-2025
- Business
- Arabian Post
ADX Ushers in MENA's First Blockchain‑Powered Bond
Abu Dhabi Securities Exchange has opened the pricing stage for the first blockchain-based digital bond in the Middle East and North Africa, issued by First Abu Dhabi Bank and powered by HSBC Orion, marking a significant leap in regional capital market innovation. Global investors will be able to participate through accounts at the Central Moneymarkets Unit in Hong Kong, Euroclear, Clearstream or via HSBC Orion, either directly or through existing custodians. The bond is structured to blend digital issuance with conventional post-trade systems, enhancing settlement efficiency while ensuring compatibility with international clearing and custody frameworks. ADX's Group CEO, Abdulla Salem Alnuaimi, described this as a defining moment in transforming capital markets through innovation, with the exchange facilitating integration of the bond into existing infrastructure and aligning it to global settlement standards. He added that the initiative paves the way for tokenised future assets such as green bonds, sukuk and real estate-linked instruments. ADVERTISEMENT FAB Group CFO Lars Kramer said the issuance establishes new benchmarks in transparency, security and efficiency, aligning with the UAE's progressive regulatory approach. He highlighted it as a vital step in FAB's innovation agenda and the development of a resilient digital capital market ecosystem. HSBC served as sole global coordinator, lead manager and bookrunner, utilising its Orion digital assets platform operated via Hong Kong's CMU. Mohamed Al Marzooqi, CEO UAE at HSBC Bank Middle East, emphasised the move as a realisation of tokenisation potential in the region, achieved through collaboration with ADX and FAB. The bond's pricing specifics—such as tenor, coupon and volume—have not been fully detailed publicly. However, analysts suggest it could be comparable with other tokenised debt instruments, such as those priced at SOFR+70 basis points with three-year maturity, reflecting institutional investor demand and digital bond issuance trends. This move follows earlier digital bond initiatives through HSBC Orion, including sovereign and supranational issuances. Such instruments highlight the platform's standing in enabling digital debt markets. The integration with CMU fortifies access to established global wholesale infrastructure by tying into Euroclear and Clearstream linkages. This strategic development positions Abu Dhabi as a regional leader in tokenised finance and digital capital markets. ADX aims to broaden its fixed-income offerings beyond traditional debt, offering investors digital bonds with advantages such as faster settlement times, reduced counterparty risk, enhanced transparency, and improved operational efficiency. FAB itself is active in blockchain ecosystems, exploring stablecoins and digital RMB. It plans to issue a Dirham stablecoin and participates in cross-border CBDC initiatives through platforms like mBridge, involving central banks of China, Hong Kong, Saudi Arabia, Thailand and the UAE. As the bond advances beyond pricing to final issuance, stakeholders will monitor investor appetite, compliance alignment and the degree of infrastructure uptake. The success of this transaction could set a template for future digital issuance in the region, reinforcing Abu Dhabi's vision of a diversified, tech‑driven capital market. Monitoring the transition from pricing to distribution and eventual listing on ADX will be critical. Observers will also assess whether digital issuance can tangibly reduce settlement durations, operational overheads and counterparty risk—fundamental value propositions of tokenised finance.
Arabian Post
04-07-2025
- Business
- Arabian Post
Digital Bond Breakthrough Sets Abu Dhabi Exchange Apart
The Abu Dhabi Securities Exchange has initiated the pricing phase for the MENA region's first bond underpinned by distributed ledger technology, marking a new era in regional capital markets. The fixed-income instrument, issued by First Abu Dhabi Bank via HSBC Orion, is set to be listed on ADX, promising enhanced operational efficiency, transparency and market access. ADX, the UAE's largest exchange and the second-largest in the Middle East and North Africa, is leading the effort to integrate tokenised financial instruments into its core infrastructure. The digital bond follows strategic collaboration among ADX, FAB and HSBC, combining regional reach with global digital issuance acumen. HSBC Orion, which powers the issuance, is operated by the Central Moneymarkets Unit based in Hong Kong. This platform supports settlement via links to Clearstream and Euroclear, allowing both traditional custody participants and direct digital‐platform users to access the bond. Legal structuring has involved top-tier international firms to ensure regulatory compliance and governance integrity. ADVERTISEMENT Abdulla Salem Alnuaimi, ADX Group chief executive officer, hailed the development as a critical milestone in embedding blockchain solutions into capital markets and supporting Abu Dhabi's digital transition. He emphasised that this issuance paves the way for tokenised green bonds, sukuk and real estate-linked assets. FAB Group CFO Lars Kramer highlighted the instrument's transformative potential, noting it advances the bank's digital strategy and provides investors with streamlined execution and settlement. He indicated that FAB is cementing its role as a pioneer in the region's digital asset ecosystem. Supporting voices from HSBC echoed the sentiment. Mohamed Al Marzooqi, CEO of HSBC Bank Middle East, said the step demonstrates how tokenisation can reshape capital markets in the Middle East, enhancing transparency, efficiency and investor access. HSBC will act as global coordinator, lead manager and bookrunner, underscoring its comprehensive involvement. Digital bonds, issued and recorded on blockchain, are designed to offer faster settlement cycles, reduced counterparty risk and improved security and transparency for institutional investors. ADX officials have emphasised that the exchange's post-trade systems are fully equipped to integrate with global settlement standards, ensuring interoperability and institutional confidence. HSBC Orion has quickly emerged as a prolific platform globally, having issued several digital bonds in the past year, including a Luxembourg treasury note and a €100 million bond by the European Investment Bank settled using CBDC. The FAB issuance leverages the platform's Hong Kong-based CMU operations, benefiting from its connections to Clearstream and Euroclear. FAB's digital ambitions extend beyond debt issuance. The bank is developing a Dirham stablecoin, has embraced China's digital RMB and is active in the mBridge cross-border CBDC initiative alongside central banks in China, Hong Kong, Saudi Arabia, Thailand and the UAE. These efforts underscore FAB's leadership in exploring blockchain applications across payments and capital markets. Market observers see ADX's move as aligning with the UAE's ambition to diversify its economy and enhance its position as a technologically advanced financial hub. Integrating DLT-based bonds into mainstream markets supports national objectives of transparency, resilience and growth. Institutional investors are expected to benefit from digital bonds through shorter settlement windows and simplified processes. Tokenisation can reduce manual reconciliation, lower operational cost, and establish immutable transaction records. Such innovations are gaining traction: ADX's listing follows a wave of global tokenised issuance, including recent bond sales via HSBC Orion. Looking ahead, the ADX platform lies poised to host a wider array of tokenised assets. ADX has flagged plans for green bonds, sukuk, and securitised property instruments — potentially transforming regional capital markets into a hybrid of traditional and blockchain-enabled finance. Global investors, whether viewing through conventional custodian channels or digital wallets, will have access to the bond via CMU, Euroclear, or Clearstream. Direct connection to HSBC Orion is also an option, ensuring flexibility in participation models. This dual-access framework is designed to attract both legacy institutional investors and early adopters of blockchain finance.
South China Morning Post
19-06-2025
- Business
- South China Morning Post
US dollar uncertainty propels use of e-CNY
The geopolitical world is becoming multipolar. Inevitably, the international monetary system is also evolving towards one where several sovereign currencies coexist and compete with each other. Advertisement As the second-largest economy, China must broaden the international role and appeal of the yuan. To this end, it makes sense to set up a new operations centre in Shanghai, the key mainland financial hub, to boost the yuan's global reach. As announced at the just-concluded Lujiazui Forum in the city, the international operations centre will pilot a range of monetary policy tools to complement the rolling out of the digital renminbi. The strategy underscores Beijing's determination to promote the use of the e-CNY, a central bank digital currency (CBDC), on a worldwide scale. At a time when most countries are still grappling with the concept of a CBDC, China is moving full steam ahead. Successful trials in the retail use of e-CNY have been carried out across a dozen Chinese cities since 2023, and in Hong Kong since last year. Advertisement A promising cross-border payments and banking system called 'mBridge' is linking the CBDCs from the central banks of China, Hong Kong, the UAE, Saudi Arabia and Thailand.
RTHK
08-05-2025
- Business
- RTHK
Cross-border digital currency platform may debut soon
Cross-border digital currency platform may debut soon Eddie Yue told RTHK that the mBridge project may soon be launched if a trial run is smooth. Photo: RTHK The head of the Hong Kong Monetary Authority (HKMA), Eddie Yue, said a new digital currency platform could soon be put in place if a trial run proves successful. The platform, called mBridge, aims to facilitate cross-border payments. It's jointly developed by the People's Bank of China and the central banks in Thailand, the United Arab Emirates and Saudi Arabia, along with the HKMA. "The trial run this year is using real-life transactions for cross-border settlement. If it goes on smoothly, the platform will actually be ready for launch," Yue told RTHK's "Government and You" programme. He added that local officials have been working with their Middle Eastern counterparts in promoting linkages in equity and bond transactions.
South China Morning Post
24-03-2025
- Business
- South China Morning Post
Decline of the US dollar as dominant global currency is inevitable: economists
The global economy is inexorably moving towards a multicurrency system as China's persistent efforts to internationalise the yuan and technological changes erode the US dollar's dominant position, economists said at a conference on Monday. Advertisement 'Trade invoicing in yuan went from zero per cent to 30 per cent in the last 10 years, and half of Chinese capital flows are now in yuan, much higher than before,' said Jin Keyu, a professor at the London School of Economics, at a panel hosted by the Milken Institute, a US-based think tank. 'The truth is that there has been a slow decline of the dollar in the data, and the non-conventional reserve currencies – even outside of the yuan – have jumped from 2 per cent to 11 per cent,' she added, noting there is 'consensus' among economists that the world is heading towards 'multicurrency equilibrium' over the long term. The emergence of alternatives to the widely used Society for Worldwide Interbank Financial Telecommunication (Swift) payment system is a 'massive undercurrent' that is accelerating the process of financial diversification, Jin said, adding that the significance of this development was underappreciated. Several new payment systems have gained traction over the past few years, including mBridge – a central bank digital currency platform built using blockchain technology – and the Chinese-designed Cross-border Interbank Payment System (CIPS). Advertisement Beijing has long pursued a strategy of turning the yuan into a global currency to create a stable monetary environment for its own economic development and to reduce the United States' dominance over the global financial system.
