ADX Lists MENA’s First Digital Native Blockchain Bond
In a regional first, Abu Dhabi Securities Exchange (ADX) has partnered with First Abu Dhabi Bank (FAB) and HSBC to list a digital native blockchain bond. This marks the debut of a distributed ledger technology (DLT)-based bond on a public exchange in the Middle East and North Africa (MENA).
FAB issued the bond using HSBC Orion, HSBC’s digital assets platform operated by Hong Kong’s Central Moneymarkets Unit (CMU). The digital native blockchain bond will be listed on ADX and made available to global investors through CMU, Euroclear, and Clearstream, enabling seamless access to blockchain-native fixed-income instruments.
The bond, recorded entirely on DLT, offers institutional investors benefits such as improved settlement speed, enhanced transparency, and reduced counterparty risks. While the region has witnessed several tokenisation pilots and private placements, this listing stands out as the first public market integration of a digital native blockchain bond.
ADX CEO Abdulla Salem Alnuaimi described it as a “defining moment” for capital markets transformation, noting it paves the way for future tokenised products, including green bonds and sukuk.
HSBC acted as sole global coordinator, lead manager, and bookrunner. Mohamed Al Marzooqi, CEO of HSBC UAE, stated the issuance turns “the promise of tokenisation into reality for our region.”
For FAB, this move underscores its digital transformation strategy while aligning with the UAE’s broader financial innovation agenda. Lars Kramer, FAB’s Group CFO, emphasized that it establishes new benchmarks in transparency, security, and efficiency.
Opening the Door for Tokenised Finance
The listing demonstrates how traditional financial market infrastructure can integrate with blockchain-native issuance models. Although global markets like Switzerland and Singapore have advanced with DLT-based bonds, this marks the first such milestone for MENA public markets.
This comes shortly after the UAE’s Securities and Commodities Authority (SCA) approved a comprehensive new regulation for security and commodity tokens, aiming to provide clearer frameworks for tokenised financial instruments in the country. The convergence of regulatory readiness and market innovation may accelerate the mainstream adoption of digital native blockchain bonds in the UAE’s capital markets.
Read more: UAE’s SCA Approves New Regulation for Security and Commodity Tokens – What’s New?
