The Abu Dhabi Securities Exchange (ADX) has tied up with HSBC to develop blockchain-backed digital fixed income securities that will be listed on the local bourse.
The two parties will explore a framework that enables digital assets to be made available on the lender’s platform, HSBC Orion, and to be listed on the stock exchange, according to a statement on Thursday. Digital assets include financial instruments like digital bonds, which are created and managed using blockchain and smart contract technology.
The partnership between ADX and HSBC is a first regional collaboration of its kind and will pave the way for the introduction of a broader array of capital market use cases in the region.
HSBC is digitising at scale by adopting new technologies like blockchain to enable the issuance of digital assets, according to Mohamed Al Marzouqi, CEO of HSBC UAE.
With blockchain technology, assets like equity, fixed income, real estate and private equity can be tokenised, thus making securities more accessible to a broader range of investors, the statement said.
“We believe that digital assets will grow in significance in the future and ADX intends to be at the forefront of this innovation,” said Abdulla Salem Alnuaimi, CEO of ADX.
“The project reaffirms our commitment to ADX’s digital transformation journey and complements our efforts to continue providing innovative products to our expanding investor base.”
(Writing by Cleofe Maceda; editing by Seban Scaria)