The Middle East and North Africa (MENA) region is close to seeing its first distributed ledger technology (DLT)-based bond listing as UAE-based exchange, Abu Dhabi Securities Exchange (ADX), has commenced the pricing stage of the bond.
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 role in introducing tokenised finance. Digital bonds, 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.
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.
Abdulla Salem Alnuaimi, group chief executive officer of ADX, said: “This initiative not only expands access to institutional-grade digital instruments, but also lays the foundation for a broader class of tokenised assets—including green bonds, sukuk, and real estate-linked products. It reinforces Abu Dhabi’s position as a leading global financial centre. It aligns with the UAE’s national agenda to build a diversified, technology-driven capital market anchored in transparency, resilience, and long-term growth.”
Working with First Abu Dhabi Bank and HSBC Orion
The new bond will be issued by First Abu Dhabi Bank (FAB) and powered using HSBC Orion, the digital assets platform. Global investors can access the digital bond through accounts held with CMU, Euroclear and Clearstream, onboarding onto HSBC Orion as a direct participant, or via their existing custodian who can participate through one of the above options.
HSBC acted as the sole global coordinator, lead manager and bookrunner on the transaction, and played a central role in bringing the end-to-end blockchain-based issuance to the MENA region.
Lars Kramer, group chief financial officer at First Abu Dhabi Bank (FAB), said: “Together with ADX and HSBC, we are setting new benchmarks in efficiency, transparency, and security, while aligning with the UAE’s progressive regulatory framework.
“By transforming traditional settlement processes into seamless digital workflows, we are not only advancing FAB’s digital transformation but also supporting investors navigate the global digital assets landscape. This bond issuance accelerates the development of a robust digital capital markets ecosystem in the UAE.”
Mohamed Al Marzooqi, chief executive officer, UAE, HSBC Bank Middle East Limited, said: “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. By combining our global experience with trusted local partners, ADX and FAB, we’re helping bolster the region’s capital markets – making them more transparent, efficient and accessible to investors.
“This is a significant milestone towards a future where digital assets become a mainstream part of the Middle East’s financial landscape.”
