Abu Dhabi partners with HSBC and FAB to enter bond tokenization | CoinDesk JAPAN

• The Abu Dhabi Securities Exchange plans to list the first blockchain-based bonds in the Middle East and North Africa region. These bonds will be issued by First Abu Dhabi Bank (FAB) utilizing HSBC's digital asset platform "Orion."
• This initiative is part of a strategy for Abu Dhabi to demonstrate leadership in the tokenization of real assets, which is expected to grow significantly over the next few years.

On July 3, the Abu Dhabi Securities Exchange announced that it is preparing to list blockchain-based bonds, the first of their kind in the Middle East and North Africa (MENA) region. This move demonstrates the growing momentum of tokenization finance in the region.

According to the press release, this bond is set to be issued by First Abu Dhabi Bank (FAB) using HSBC's digital asset issuance platform "Orion," and it will be recorded and traded using distributed ledger technology.

This allows investors to directly purchase and hold bonds on the blockchain, which is expected to shorten settlement times, reduce counterparty risk, and improve transparency.

This bond will be available to institutional investors worldwide through major securities settlement systems including Euroclear, Clearstream, and the Central Moneymarkets Unit in Hong Kong.

This initiative is part of Abu Dhabi's broader strategy to play an important role in the tokenization of real-world assets (RWA) such as bonds, funds, and real estate. The tokenization of real-world assets has become a highly popular field attracting attention from major banks and asset management companies.

According to multiple reports by Ripple, BCG, McKinsey, and Standard Chartered, the tokenized RWA market could grow to several trillion dollars in the coming years.

"This initiative not only expands access to institutional investor-grade digital financial products but also lays the foundation for a broader range of tokenized assets, including green bonds, sukuk (Islamic bonds), and real estate-related products," said Abdulla Salem Alnuaimi, CEO of the Abu Dhabi Securities Exchange Group, in a statement, adding the following.

"This strengthens its position as one of the world's leading financial centers in Abu Dhabi."