UAE’s leading bank to start issuing blockchain loans secured by tokenized assets

The issue of digital tokens for ownership rights will be carried out by the Libre Capital platform

10.12.2024 - 15:00

3 min

What’s new? The UAE’s largest bank, First Abu Dhabi Bank (FAB), has begun partnering with Libre Capital, a tokenization platform backed by fintech incubator WebN Group from Nomura Bank’s crypto unit, Laser Digital, and co-founder of Brevan Howard asset manager Alan Howard. Together, FAB and Libre Capital will launch a secured loan program on blockchain using tokenized real-world assets (RWAs) such as securities.

Material by CoinDesk

What else is known? According to a memorandum of understanding (MoU) signed by the parties, FAB will launch a pilot stablecoin loan issuance facility for approved customers, secured in tokens issued by Libre Capital.

Since launching in March, Libre Capital has already issued tokens of funds and other income products from Brevan Howard, advisory firm Hamilton Lane, and the world’s largest investment firm, BlackRock, totaling $150 million.

Loan issuance and liquidity management will take place on Ethereum, Polygon, Solana, NEAR, Aptos, and Base. Loans will be made through broker-dealers or Laser Digital itself.

FAB’s senior executive Sameh Al Qubaisi noted the bank is committed to fostering innovation in the region and the new initiative will provide robust credit lines with automated processes to ensure reliable risk management and full compliance.

Earlier this year, the Abu Dhabi International Financial Center (ADGM) signed a memorandum of understanding with Solana Foundation, a non-profit organization established to support the blockchain of the same name.

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Earlier this month, analysts at leading venture capital fund Andreessen Horowitz (a16z) named tokenization as one of the top trends for 2025. This segment of the crypto market is attracting an increasing number of institutional investors because tokenization converts ownership of assets into digital coins that can be traded around the clock without intermediaries.

Last month, Tether, the issuer of USDT, the largest cryptocurrency in the crypto market with a capitalization of $138,4 billion, launched its institutional tokenization platform. At the same time, the Central Bank of Hong Kong launcheda three-year program to subsidize the issuance of tokenized bonds to encourage mass adoption of the technology.

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