ADX and HSBC collaborate on the introduction of digital bonds

Abu Dhabi Stock Exchange (ADX) and HSBC Bank Middle East Limited (HSBC) are collaborating in the first regional collaboration of its kind to develop digital bonds, paving the way for greater capital markets utilization in the Middle East. The initiative builds on the investment expertise of ADX, the fastest growing exchange in the Middle East, and on HSBC's unique investment banking, capital markets and blockchain capabilities.

Abdullah Salem Alnuaimi, CEO of ADX, said: "We are delighted to partner with HSBC, one of the world's leading banks, to develop a digital fixed income product. We believe that digital assets will be increasingly important in the future and ADX intends to be at the forefront of this''innovation process. The project reaffirms our commitment to ADX's digital transformation and complements our efforts in delivering innovative products to our growing investor base. ADX and HSBC will explore a framework that will enable digital assets, such as digital bonds, to be presented on HSBC Orion's digital asset platform and listed on ADX. "

Mohamed Al Marzouki, CEO of HSBC UAE, said: "HSBC is scaling digitalization by adopting new technologies such as blockchain to enable the issuance, storage and trading of digital assets.

Digital bonds are financial instruments created and managed using blockchain technology and smart contracts to improve efficiency in capital markets. Using blockchain technology, a wider range of assets such as stocks, bonds, real estate and private equity can be tokenized. This will allow more investors to own these assets and make capital markets more accessible.