The Abu Dhabi Securities Exchange (ADX) has partnered with HSBC Bank Middle East Limited (HSBC) to create digital fixed-income securities. This collaborative effort capitalises on the expertise of ADX, which is the fastest-growing exchange in the Middle East according to the company press release, and HSBC's extensive experience in investment banking, capital markets, and blockchain technologies.

According to the same source, officials from ADX expressed enthusiasm for the collaboration, stating that the creation of a digital fixed-income product reflects their commitment to staying at the forefront of innovation in the financial sector. They emphasised that the project aligns with ADX's ongoing digital transformation efforts and its dedication to offering innovative products to its expanding investor base. As part of this collaboration, ADX and HSBC are exploring a framework to enable digital assets, such as digital bonds, to be integrated into HSBC Orion, the bank's digital assets platform, and subsequently listed on ADX.

Representatives from HSBC highlighted the bank's commitment to digitisation and the adoption of technologies like blockchain for the issuance, custody, and trading of digital assets. This initiative is expected to improve operational efficiency and open up new investment opportunities for a wide range of investors. By leveraging HSBC Orion, their proprietary digital assets platform, and combining their expertise in capital markets and custody, HSBC and ADX aim to introduce this innovative development to the market.

Digital bonds, the focal point of this collaboration, are financial instruments created and managed using blockchain and smart contract technology. The utilisation of blockchain technology enables the tokenization of a broader array of assets, including equities, fixed income, real estate, and private equity. This tokenization process enhances access to ownership of these assets for a wider spectrum of investors, ultimately making securities markets more inclusive and accessible.

Other developments from HSBC in the Middle East In February 2023, HSBC partnered with Uber to launch a digital payments solution that enables on-demand cashouts into mobile wallets for unbanked drivers in Egypt. Through this collaboration, the two entities aimed to provide drivers on the Uber platform with access to 100% of their earnings which is both fast and convenient through HSBCnet’s payment solution. According to the official announcement issed at the time, the Uber and HSBC collaboration for the launch of the solution, entitled Flexpay, is part of their mission of continuously finding innovative solutions to leverage technology to cater for local needs.

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