Abu Dhabi Securities Exchange (ADX) and HSBC Bank Middle East Limited have joined forces in a pioneering regional collaboration to develop digital fixed-income securities, setting the stage for the introduction of a wider spectrum of capital market applications in the Middle East.
This groundbreaking initiative capitalizes on the investment product expertise of ADX, the fastest-growing exchange in the Middle East, and HSBC’s world-class capabilities in investment banking, capital markets, and blockchain technology.
Abdulla Salem Alnuaimi, CEO of ADX, explained that digital assets will grow in significance in the future, and ADX intends to be at the forefront of this innovation.
According to Abdullah, ADX and HSBC will explore a framework that enables digital assets, such as digital bonds, to be made available on HSBC Orion, the bank’s digital assets platform, and to be listed on ADX.
Mohamed Al Marzouqi, CEO of HSBC UAE, added, “HSBC is digitizing at scale by adopting new technologies like blockchain to enable the issuance of digital assets, hold them in custody, and make them available for trading. This capability will help accelerate efficiency and drive new and innovative opportunities for investors. HSBC and ADX are working together to leverage HSBC Orion, our proprietary digital assets platform, and use our collective capabilities in capital markets and custody, to bring this exciting development to the market.”
It is worth noting that digital bonds are financial instruments created and managed using blockchain and smart contract technology to enhance efficiencies in capital markets.
The use of blockchain technology enables a wider range of assets, including equity, fixed income, real estate, and private equity, to be tokenized, making ownership of these assets more accessible to a broader range of investors and increasing the accessibility of securities markets.
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