The Abu Dhabi Securities Exchange (ADX), the UAE’s largest exchange and MENA’s second-largest, has announced the pricing stage for the region’s first distributed ledger technology (DLT)-based bond. Issued by First Abu Dhabi Bank (FAB) using HSBC Orion, this landmark listing underscores ADX’s leadership in financial innovation and supports Abu Dhabi’s digital transformation agenda.
The bond results from a strategic partnership between ADX, HSBC, and FAB, blending regional financial expertise with global digital issuance capabilities. Powered by HSBC Orion—operated by Hong Kong’s Central Moneymarkets Unit (CMU)—and structured with top international law firms, the initiative reflects rigorous governance standards.
Global investors can access the digital bond via accounts with CMU, Euroclear, or Clearstream, either directly through HSBC Orion or via custodians. The listing expands ADX’s innovative product offerings and pioneers tokenized finance in MENA. Digital bonds, recorded on blockchain, enhance operational efficiency, settlement speed, transparency, and security for institutional investors.
Ensuring Seamless Integration With Existing Infrastructure
HSBC served as the sole global coordinator, lead manager, and bookrunner for the transaction, leading the end-to-end blockchain-based issuance in MENA.
Abdulla Salem Alnuaimi, the group CEO of ADX, stated: “The successful launch of MENA‘s inaugural blockchain-based digital bond, achieved in partnership with FAB and HSBC, represents a significant milestone in our efforts to innovate and transform capital markets. ADX played a key role in making this achievement possible, ensuring the bond was smoothly integrated with current post-trade systems and aligned with international settlement standards.”
The CEO of ADX Group Added, “This initiative not only enhances access to high–quality digital assets for institutions, but also establishes a basis for a wider range of tokenized assets, such as green bonds, sukuk, and real estate-related products. It strengthens Abu Dhabi’s status as a prominent global financial hub and supports the UAE’s national goal of creating a diverse, technology-focused capital market that is built on transparency, resilience, and sustainable growth.”
Advancing UAE’s Digital Capital Markets
Lars Kramer, the group chief financial officer of First Abu Dhabi Bank (FAB), stated, “This achievement represents a major step forward in our innovation efforts, positioning FAB as the first issuer of a blockchain-based digital bond in the MENA region. In collaboration with ADX and HSBC, we are establishing new standards for efficiency, transparency, and security while adhering to the UAE’s forward-thinking regulatory framework. By converting traditional settlement methods into smooth digital processes, we are not only enhancing FAB’s digital transformation but also assisting investors in navigating the global digital assets market. This bond issuance propels the growth of a strong digital capital markets ecosystem in the UAE.”
Mohamed Al Marzooqi, CEO of HSBC Bank Middle East Limited in the UAE, stated, “The successful introduction of MENA’s inaugural digital bond on ADX through HSBC Orion demonstrates our commitment to turning the concept of tokenisation into a reality for our region. By leveraging our global expertise alongside reliable local partners like ADX and FAB, we are enhancing the region’s capital markets, making them more transparent, efficient, and accessible for investors. This marks an important step towards a future where digital assets are a standard component of the Middle East’s financial environment.”
Additionally, the bond is created to align with worldwide settlement systems, combining digital technology with current post-trade frameworks. This approach connects traditional markets with modern issuance methods and facilitates access for institutional investors.
