Abu Dhabi's Securities Exchange (ADX) is preparing to list the first blockchain-based bond in the MENA region, issued by First Abu Dhabi Bank (FAB) on HSBC's digital asset platform, Orion. This initiative marks a significant step in Abu Dhabi's strategy to lead the way in real-world asset (RWA) tokenization, which is expected to experience considerable growth. The bond will utilize distributed ledger technology for recording and trading, allowing investors direct access to the bond through blockchain, which may enhance transparency, speedier settlement times, and reduced counterparty risk. Global institutional investors can access the bond through major securities settlement systems such as Euroclear and Clearstream. This issuance reflects a broader strategy aimed at facilitating tokenization of RWAs such as bonds, funds, and real estate, which has attracted the attention of major banks and asset managers alike, with predictions estimating that the market could reach trillions of dollars in the coming years.

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