Abu Dhabi Ventures Into Bond Tokenization with HSBC and FAB as RWA Momentum Accelerates

Finance

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By Krisztian Sandor, AI Boost|Edited by Stephen Alpher

Jul 3, 2025, 1:12 p.m.

Abu Dhabi (Kamil Rogalinski/Unsplash)
  • The Abu Dhabi Securities Exchange is set to list the first blockchain-based bond in the region, issued by First Abu Dhabi Bank using HSBC’s digital asset platform Orion.
  • The initiative is part of Abu Dhabi’s strategy to lead in the tokenization of real-world assets, a market projected to grow significantly in the coming years.

The Abu Dhabi Securities Exchange (ADX) said on Thursday it is preparing to list the first blockchain-based bond in the Middle East and North Africa (MENA) region, a move that signals growing momentum behind tokenized finance in the region.

Set to be issued by First Abu Dhabi Bank (FAB) using global bank HSBC’s digital asset issuance platform Orion, the bond will be recorded and traded on distributed ledger technology, the press release said. That means investors will be able to buy and hold the bond directly on blockchain rails, potentially speeding up settlement times, reducing counterparty risk and enhancing transparency.

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The bond will be accessible to global institutional investors via major securities settlement systems including Euroclear, Clearstream and Hong Kong’s Central Moneymarkets Unit.

The issuance is part of Abu Dhabi’s broader strategy to play a key role in tokenization of real-world assets (RWA) such as bonds, funds real or estate, a red-hot trend that has captivated the attention of big banks and asset managers. The tokenized RWA market could grow to trillions of dollars over the coming years, several reports by Ripple, BCG, McKinsey and Standard Chartered projected.

“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 [Islamic bond] and real estate-linked products,” ADX Group CEO Abdulla Salem Alnuaimi said in a statement.

“It reinforces Abu Dhabi’s position as a leading global financial centre,” he added.

Read more: Abu Dhabi’s ADGM and Chainlink Partner to Develop Compliant Tokenization Frameworks

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.

Krisztian Sandor is a U.S. markets reporter focusing on stablecoins, tokenization, real-world assets. He graduated from New York University’s business and economic reporting program before joining CoinDesk. He holds BTC, SOL and ETH.

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“AI Boost” indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk’s AI Policy.

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