Abu Dhabi Securities Exchange ( ADX ), the largest exchange in the United Arab Emirates and second largest exchange in the Middle East and North Africa ( MENA ), has taken the initial step towards listing the first-ever digital bond in the region. The pricing stage of the deal has begun.

Issued by First Abu Dhabi Bank ( FAB ) using HSBC’s digital assets platform Orion, the upcoming listing of the distributed ledger technology ( DLT )-based bond represents a landmark step in ADX’s mission to lead financial innovation and support Abu Dhabi’s digital transformation agenda, according to the exchange.

The digital bond is powered by HSBC Orion, which is operated by the Central Moneymarkets Unit ( CMU ) in Hong Kong, and structured with support from leading international law firms.

Global investors can access the digital bond through accounts held with CMU, Euroclear and Clearstream, onboarding onto HSBC Orion as direct participant, or via their existing custodian who can participate through one of the available options.

According to ADX, introducing the digital bond into its growing list of financial products supports its broader ambition to offer innovative financial instruments and highlights the exchange’s pioneering role in introducing tokenized finance.

Operational efficiencies

Digital bonds, fixed income securities issued and recorded on blockchain technology, offer operational efficiencies, improved settlement cycles, reduced counterparty risk, improved security, and enhanced transparency for institutional investors.

HSBC acted as the sole global coordinator, lead manager, and bookrunner on the transaction, and played a central role in bringing the end-to-end blockchain-based issuance to the MENA region.

“The successful issuance of MENA’s first blockchain-based digital bond, in close collaboration with FAB and HSBC, marks a defining moment in our journey to transform capital markets through innovation,” says ADX group chief executive officer Abdulla Salem Alnuaimi. “ADX was central in facilitating this milestone, ensuring the bond’s seamless integration with existing post-trade infrastructure and compatibility with global settlement standards.”

“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. It reinforces Abu Dhabi’s position as a leading global financial centre. It aligns with the UAE’s national agenda to build a diversified, technology-driven capital market anchored in transparency, resilience, and long-term growth,” he adds.

Designed to ensure compatibility with global settlement infrastructure, the bond integrates digital technology with existing post-trade infrastructure, bridging traditional markets with next-generation issuance models and supporting institutional access.