HSBC has collaborated with ADX and FAB to launch the first digitally native bond in the MENA region on blockchain technology, expanding HSBC’s digital bond offerings on its Orion platform.
Teaming up with Abu Dhabi Securities Exchange and First Abu Dhabi Bank, HSBC has introduced the MENA region’s inaugural digitally native bond utilizing distributed ledger technology. According to Middle East Economy, ADX has already initiated the pricing process for this innovative product.
Managed by FAB, the bond will be issued through HSBC’s blockchain-based digital asset infrastructure, Orion platform. While Orion operates in Hong Kong and Luxembourg, this particular issuance will utilize the Hong Kong platform for its integration with Euroclear and Clearstream, providing seamless access for global investors.
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This collaboration with ADX and FAB signifies Orion’s debut in the Middle East. Although this is the platform’s first digital bond in the region, Orion has previously supported the launch of a digital treasury note in Luxembourg and a €100 million digital bond from the European Investment Bank settled via a wholesale central bank digital currency.
Moreover, Orion facilitated HKMA’s pioneering multi-currency green bond issuance in February last year, where the Hong Kong government issued a HKD 6 billion-equivalent digital bond in HKD, CNH, USD, and EUR. This issuance, settled using atomic delivery-versus-payment, 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 for launching tokenized gold for retail investors.
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