Abu Dhabi Pioneers Blockchain-Based Bond Tokenization with HSBC and FAB

The Abu Dhabi Securities Exchange (ADX) is set to list the MENA region's first blockchain-based bond, marking a significant leap in tokenized finance. First Abu Dhabi Bank (FAB) will issue the bond using HSBC's Orion platform, leveraging distributed ledger technology for recording and trading. This innovation promises faster settlements, reduced counterparty risk, and enhanced transparency for institutional investors globally.

The bond will be accessible via major settlement systems like Euroclear and Clearstream, underscoring Abu Dhabi's ambition to lead in real-world asset (RWA) tokenization. The RWA market, projected by firms like Ripple and McKinsey to reach trillions, is attracting heavyweight financial players. Green bonds and Islamic sukuk are next in line for digitization, signaling a structural shift in capital markets.