Abu dhabi: Abu Dhabi Securities Exchange (ADX) has announced the commencement of the pricing stage as the initial step toward listing the first-ever, distributed ledger technology (DLT)-based bond in the region. Issued by First Abu Dhabi Bank (FAB) using HSBC Orion, a market-leading digital assets platform, the upcoming bond listing represents a landmark step in ADX's mission to lead financial innovation and support Abu Dhabi's digital transformation agenda.
According to Bahrain News Agency, global investors can access the digital bond through accounts held with the Central Moneymarkets Unit (CMU), Euroclear, and Clearstream, either by onboarding onto HSBC Orion as direct participants or through their existing custodians who can participate through one of the above options. The upcoming listing is the result of strategic collaboration between ADX, HSBC, and FAB, combining regional financial leadership with global expertise in digital issuance.
Powered by HSBC Orion, which is operated by the CMU in Hong Kong, and structured with support from leading international law firms, the initiative reflects a high standard of governance. Introducing the digital bond into ADX's growing list of financial products supports its broader ambition to offer innovative financial instruments and signifies the Exchange's pioneering role in introducing tokenized finance.
Digital bonds, which are fixed-income securities issued and recorded on blockchain technology, offer operational efficiencies, improved settlement cycles, reduced counterparty risk, improved security, and enhanced transparency for institutional investors. HSBC acted as the sole global coordinator, lead manager, and bookrunner on the transaction, playing a central role in bringing the end-to-end blockchain-based issuance to the MENA region.
Designed to ensure compatibility with global settlement infrastructure, the bond integrates digital technology with existing post-trade infrastructure, bridging traditional markets with next-generation issuance models and supporting institutional access.