HSBC, in collaboration with ADX and FAB, has introduced the first digitally native bond on blockchain in the MENA region. This initiative adds to HSBC’s expanding portfolio of digital bond issuances on its Orion platform.
Partnering with Abu Dhabi Securities Exchange and First Abu Dhabi Bank, HSBC has launched the MENA region’s pioneer digitally native bond using distributed ledger technology. Middle East Economy reports that ADX has already initiated the pricing process for this innovative product.
The bond, issued by FAB, will be rolled out through HSBC’s Orion platform, a blockchain-based digital asset infrastructure. Orion is managed through the Central Moneymarkets Unit in Hong Kong and also operates in Luxembourg. However, for this particular issuance, the Hong Kong platform is utilized due to its seamless integration with Euroclear and Clearstream, facilitating global investor access.
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This collaboration with ADX and FAB marks Orion’s debut in the Middle East. Nevertheless, this isn’t the platform’s first digital bond launch. Orion has previously supported the introduction of a digital treasury note from Luxembourg and a €100 million digital bond from the European Investment Bank, settled using a wholesale central bank digital currency.
Furthermore, Orion facilitated the HKMA’s groundbreaking multi-currency green bond issuance in February last year. In this issuance, the Hong Kong government issued a HKD 6 billion-equivalent digital bond across HKD, CNH, USD, and EUR, settling through atomic delivery-versus-payment. This process reduced settlement times from T+5 to T+1 and broadened access to over 50 global investors.
Aside from bonds, the platform has also been utilized to launch tokenized gold for retail investors.
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