The Abu Dhabi Securities Trade (ADX) said on Thursday it’s making ready to listing the primary blockchain-based bond within the Center East and North Africa (MENA) area, a transfer that indicators rising momentum behind tokenized finance within the area.
Set to be issued by First Abu Dhabi Financial institution (FAB) utilizing international financial institution HSBC’s digital asset issuance platform Orion, the bond will likely be recorded and traded on distributed ledger expertise, the press launch mentioned. Meaning buyers will be capable of purchase and maintain the bond instantly on blockchain rails, doubtlessly rushing up settlement instances, lowering counterparty danger and enhancing transparency.
The bond will likely be accessible to international institutional buyers through main securities settlement programs together with Euroclear, Clearstream and Hong Kong’s Central Moneymarkets Unit.
The issuance is a part of Abu Dhabi’s broader technique to play a key position in tokenization of real-world property (RWA) reminiscent of bonds, funds actual or property, a red-hot development that has captivated the eye of massive banks and asset managers. The tokenized RWA market may develop to trillions of {dollars} over the approaching years, a number of reviews by Ripple, BCG, McKinsey and Standard Chartered projected.
“This initiative not solely expands entry to institutional-grade digital devices, but in addition lays the muse for a broader class of tokenized property — together with
inexperienced bonds, sukuk [Islamic bond] and actual estate-linked merchandise,” ADX Group CEO Abdulla Salem Alnuaimi mentioned in a press release.
“It reinforces Abu Dhabi’s place as a number one international monetary centre,” he added.
Learn extra: Abu Dhabi’s ADGM and Chainlink Partner to Develop Compliant Tokenization Frameworks