HSBC, ADX, and FAB Launch MENA’s First Blockchain Bond
HSBC is making another move into digital assets—this time in the Middle East. Alongside Abu Dhabi Securities Exchange (ADX) and First Abu Dhabi Bank (FAB), the banking giant has rolled out the region’s first digitally native bond built on blockchain. The deal adds to HSBC’s growing list of blockchain-based bond issuances, all handled through its Orion platform.
Middle East Economy reports that ADX has already started pricing the bond, which is being issued by FAB. The whole thing runs on Orion, HSBC’s blockchain system for digital assets. Orion isn’t new—it’s been used in Hong Kong and Luxembourg before—but this marks its debut in the Middle East. For this deal, they’re sticking with the Hong Kong setup, mostly because it links up with Euroclear and Clearstream, making it easier for international investors to get involved.
Not Orion’s First Rodeo
This isn’t the first digital bond Orion has handled. Last year, it backed a €100 million bond from the European Investment Bank, settled using a wholesale central bank digital currency. Before that, there was a digital treasury note from Luxembourg. And let’s not forget Hong Kong’s big multi-currency green bond in February 2023—a HKD 6 billion deal spanning four currencies, which slashed settlement times from five days to just one.
But bonds aren’t the only thing Orion does. The platform has also dabbled in tokenized gold for retail investors. It’s clear HSBC sees potential here, even if the broader market is still figuring out how much of this stuff will stick.
Why This Matters
Blockchain-based bonds aren’t exactly mainstream yet, but they’re gaining traction. The big sell is efficiency—less paperwork, faster settlements, and theoretically lower costs. For a region like MENA, where financial markets are still evolving, this could be a way to attract more global investors without the usual friction.
That said, it’s early days. While HSBC and others are pushing ahead, widespread adoption will depend on whether institutions and regulators can keep up. For now, though, this deal is at least a sign that the pieces are starting to fit together.
And who knows? If this goes smoothly, we might see more banks and exchanges jumping in. Or maybe not. These things have a way of moving slower than expected. Either way, it’s worth keeping an eye on.
