Abu Dhabi Securities Exchange (ADX) has launched the pricing phase for the region’s first distributed ledger technology (DLT)-based bond, setting a new benchmark in financial innovation and blockchain integration.
The bond, issued by First Abu Dhabi Bank (FAB) through HSBC’s digital asset platform, HSBC Orion, is the first of its kind to be listed in the Middle East and North Africa (MENA) region. The move marks a watershed moment for capital markets in the UAE and underscores Abu Dhabi’s growing leadership in fintech-driven transformation.
The listing is the outcome of a strategic collaboration between three major players: ADX, FAB, and HSBC. Combining local financial power with global digital expertise, the partnership brings blockchain-based fixed-income instruments into the mainstream, opening the door to a new era of tokenised securities for institutional investors.
First steps toward new financial era
The pricing phase represents the first stage in the bond’s journey toward official listing on ADX. Unlike traditional bonds, which are traded and settled through conventional post-trade systems, this bond is issued and recorded entirely on distributed ledger technology. It will be accessible to global investors through leading international platforms, including Hong Kong’s Central Moneymarkets Unit (CMU), Euroclear, and Clearstream.
By using blockchain, the new bond offers a range of advantages over traditional instruments. These include faster and more efficient settlement, enhanced transparency, reduced counterparty risk, and improved security for investors. The integration with existing financial infrastructure ensures global compatibility, enabling institutional investors to access the bond via their current custodians or directly through the HSBC Orion platform.
Tokenisation in capital markets
ADX Group CEO Abdulla Salem Alnuaimi said the launch was a “defining moment” in the Exchange’s strategy to revolutionise capital markets through technology. “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,” Alnuaimi said. “ADX was central in facilitating this milestone, ensuring the bond’s seamless integration with existing post-trade infrastructure and compatibility with global settlement standards.”
The move reflects ADX’s broader ambition to diversify its product offerings and reinforce Abu Dhabi’s role as a fintech hub in the region. The Exchange has been working steadily to build infrastructure for digital finance, including tokenised assets and next-generation post-trade solutions, that align with the UAE government’s forward-thinking regulatory frameworks.
FAB and HSBC push for next-gen finance
FAB, the UAE’s largest bank, played a critical role as issuer of the bond. Group CFO Lars Kramer said the project sets a “new benchmark” for the financial sector in terms of efficiency, transparency and technological integration. “Together with ADX and HSBC, we are setting new benchmarks in efficiency, transparency, and security, while aligning with the UAE’s progressive regulatory framework,” Kramer said.
HSBC acted as the sole global coordinator, lead manager and bookrunner for the transaction. Its HSBC Orion platform enabled full end-to-end digital issuance, positioning the bank at the forefront of tokenisation in the MENA region. “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,” said Mohamed Al Marzooqi, CEO of HSBC Bank Middle East Limited.
What makes this listing particularly significant is its ability to bridge the gap between traditional capital markets and emerging fintech models. The bond, though digital, is designed to operate within the conventional financial infrastructure, ensuring compatibility with international standards and regulatory systems. This hybrid approach enables both existing and new market participants to engage with blockchain-based financial products in a familiar and regulated environment.
Legal structuring of the bond involved international law firms to ensure high governance standards, and the deal was built to meet the requirements of global institutional investors.
The ADX-FAB-HSBC collaboration is being closely watched as a potential model for other issuers in the region. With the pricing phase now underway, the digital bond is expected to list on ADX in the near future, opening a path for further tokenised securities, such as sukuk, green bonds, and other fixed-income instruments.
As Abu Dhabi continues to push forward with its digital transformation strategy, the launch of this bond signals a broader shift in the region’s financial architecture — one that is increasingly driven by blockchain, artificial intelligence, and smart regulation.
This milestone not only enhances the UAE’s global competitiveness but also positions the region as a leader in the adoption of secure, efficient, and future-ready capital market solutions.
