Abu Dhabi Lists First Blockchain Bond on ADX

Abu Dhabi has achieved a significant milestone in financial innovation with the listing of its first blockchain bond. This groundbreaking initiative is the result of a collaboration between First Abu Dhabi Bank (FAB), HSBC, and the Abu Dhabi Securities Exchange (ADX). The bond is now officially listed on ADX, marking a new era in debt issuance by merging blockchain efficiency with conventional market infrastructure.

The issuance was executed using HSBC’s Orion blockchain platform, with FAB serving as the issuer and HSBC acting as global coordinator and lead bookrunner. This structure allows international investors to access the bond through both modern and traditional settlement systems, such as Euroclear and Clearstream, or directly via Orion. The bond offers reduced operational costs, faster settlements, and increased transparency for investors, setting a new standard for debt issuance.

Extensive legal and regulatory groundwork was laid to ensure full global compliance. Mohamed Al Marzooqi of HSBC UAE highlighted the project’s role in making tokenized assets practical for institutional use, while FAB’s CFO Lars Kramer emphasized its alignment with the UAE’s forward-thinking regulatory approach. Both echoed the sentiment that this bond offers a glimpse into the future of capital markets.

ADX CEO Abdulla Salem Alnuaimi added that the exchange is building long-term capabilities to support a broader shift toward digital finance, positioning the UAE as a leader in next-generation financial instruments. This launch could serve as a prototype for a wider range of digital offerings in the region, signaling the start of a significant transformation in MENA’s capital markets.

The digital bond represents a landmark step in ADX’s mission to lead financial innovation and support Abu Dhabi’s digital transformation agenda. It offers operational efficiencies, improved settlement cycles, reduced counterparty risk, enhanced security, and greater transparency for institutional investors. HSBC played a pivotal role in this transaction, facilitating the end-to-end blockchain-based issuance in the MENA region.

Alnuaimi highlighted the significance of this milestone, stating that it marks a defining moment in transforming capital markets through innovation. He emphasized that this initiative not only expands access to institutional-grade digital instruments but also lays the foundation for a broader class of tokenized assets, including green bonds, sukuk, and real estate-linked products. This move reinforces Abu Dhabi’s position as a leading global financial center and aligns with the UAE’s national agenda to build a diversified, technology-driven capital market anchored in transparency, resilience, and long-term growth.

The successful listing of this blockchain bond underscores the potential of digital technology to revolutionize traditional financial markets. By integrating blockchain with existing post-trade infrastructure, ADX is bridging the gap between conventional and next-generation issuance models, supporting institutional access and paving the way for future innovations in the financial sector. This development is expected to attract more institutional investors to the region, further solidifying Abu Dhabi’s role as a hub for financial innovation.