REPORT BASED ON PRESS RELEASE : 02 Nov 2023 by ADX
Abu Dhabi Securities Exchange (ADX) and HSBC Bank Middle East Limited (HSBC) have joined forces in a pioneering regional collaboration to develop digital fixed-income securities, marking a significant milestone in the Middle East’s capital market landscape.
This innovative initiative harnesses ADX’s expertise as the fastest-growing exchange in the Middle East, along with HSBC’s world-class investment banking, capital markets, and blockchain capabilities.
Abdulla Salem Alnuaimi, Chief Executive Officer of ADX, expressed his enthusiasm for the collaboration with HSBC, a globally renowned bank, in crafting a digital fixed-income product. Alnuaimi emphasized ADX’s commitment to staying ahead of the curve in embracing digital assets, underlining the exchange’s dedication to innovation and providing cutting-edge products to its growing investor base. The project aligns with ADX’s digital transformation journey, aiming to introduce digital assets like digital bonds on HSBC Orion, the bank’s digital assets platform, and to list them on ADX.
Mohamed Al Marzouqi, Chief Executive Officer, UAE, HSBC, highlighted the bank’s digitalization efforts, particularly through adopting blockchain technology to facilitate the issuance, custody, and trading of digital assets at scale. Al Marzouqi emphasized that this capability would enhance efficiency and unlock new opportunities for investors. By leveraging HSBC Orion and their collective expertise in capital markets and custody, HSBC and ADX aim to bring this exciting development to the market.
Digital bonds, created and managed using blockchain and smart contract technology, promise to streamline processes in capital markets. By tokenizing a broader range of assets, such as equity, fixed income, real estate, and private equity, blockchain technology will democratize access to ownership of these assets, making securities markets more inclusive and accessible to a wider range of investors.
