Introducing MENA's Initial Blockchain-Facilitated Digital Bond by ADX
Abu Dhabi, July 3, 2025 - The Abu Dhabi Securities Exchange (ADX) has made history by launching the first blockchain-based digital bond in the Middle East and North Africa (MENA) region. The groundbreaking bond, issued by First Abu Dhabi Bank (FAB) and powered by HSBC Orion, marks a significant milestone in Abu Dhabi's financial innovation and digital transformation agenda.
The digital bond, which utilises distributed ledger technology (DLT), or blockchain, to digitally issue and record fixed-income securities, is a collaborative effort between ADX, FAB, and HSBC. HSBC acted as the sole global coordinator, lead manager, and bookrunner for the bond issuance, ensuring its regulatory and legal robustness with the support of leading international law firms.
The bond is now available on the ADX and can be accessed through HSBC Orion or via an investor's existing custodial banking relationships. This digital bond is fully integrated with existing post-trade infrastructure and is compatible with global settlement standards, enabling smooth settlement and custody processes worldwide.
Global investors can participate in this digital bond through accounts held with CMU, Euroclear, and Clearstream, broadening its international reach. The operational efficiencies, improved settlement cycles, reduced counterparty risk, increased security and transparency, and broader investor access offered by the digital bond make it an attractive proposition for institutional investors.
The successful execution of the blockchain-powered bond sets a precedent within the UAE and the broader MENA region. This initiative positions Abu Dhabi as a regional leader in financial innovation and digital assets adoption, reinforcing its commitment to transforming capital markets. It supports Abu Dhabi's and the UAE’s national agendas for digital transformation and a diversified, technology-driven capital market, emphasising transparency, resilience, and long-term growth.
The successful issuance lays the groundwork for a wider range of tokenized financial products in the future, such as green bonds, sukuk (Islamic bonds), and real estate-linked assets, expanding the digital finance ecosystem in the region. By bridging traditional markets with next-generation digital issuance models, the ADX is enhancing the resilience and competitiveness of Abu Dhabi’s capital markets on the global stage.
In summary, the first blockchain-based digital bond in MENA serves as a pioneering advancement that enhances operational efficiency, security, and global access while strategically positioning Abu Dhabi as a hub for innovative, technology-driven financial markets. This development signifies a significant leap in the region's adoption of cutting-edge financial technologies, demonstrating how traditional financial institutions can align with digital innovation.
The digital bond, launched by First Abu Dhabi Bank (FAB) and powered by HSBC Orion, represents a significant fusion of the financial, business, and technology sectors. This groundbreaking bond, which utilizes blockchain technology for digital issuance and recording, is a collaborative effort between ADX, FAB, and HSBC, marking a milestone in Abu Dhabi's financial innovation and digital transformation agenda.
