📣 First Abu Dhabi Bank Taps Blockchain Lending with Libre Capital
posted 10 Dec 2024
First Abu Dhabi Bank has joined forces with Libre Capital under an MoU to pilot blockchain-driven secured lending solutions.
First Abu Dhabi Bank (FAB) has partnered with Libre Capital through an MoU aimed at integrating tokenized real-world assets (RWA) into lending operations, enabling them to be used as collateral for stablecoin loans.
Libre Capital, in collaboration with WebN Group and Nomura’s Laser Digital, has successfully tokenized $150 million worth of assets since March 2024. This includes funds from Brevan Howard, Hamilton Lane’s fixed-income products, and BlackRock's money-market fund.
FAB will test credit lines secured by these tokenized assets for eligible borrowers as part of the initiative.
Libre and FAB's collaboration paves the way for blockchain-secured lending to flourish. Borrowers can now utilize RWA tokens from Libre as collateral on a variety of public blockchains, including Ethereum, Polygon, Solana, NEAR, Aptos, and Coinbase's Base network.
This initiative falls under Libre’s "Project HODL" strategy, which strives to broaden the real-world applications of tokenized assets.
At the MoU signing in the UAE, Sameh Al Qubaisi, FAB’s Head of Global Markets, highlighted the bank’s forward-thinking vision.
Libre Capital, in collaboration with WebN Group and Nomura’s Laser Digital, has successfully tokenized $150 million worth of assets since March 2024. This includes funds from Brevan Howard, Hamilton Lane’s fixed-income products, and BlackRock's money-market fund.
FAB will test credit lines secured by these tokenized assets for eligible borrowers as part of the initiative.
Advancing Blockchain Lending Opportunities
Libre and FAB's collaboration paves the way for blockchain-secured lending to flourish. Borrowers can now utilize RWA tokens from Libre as collateral on a variety of public blockchains, including Ethereum, Polygon, Solana, NEAR, Aptos, and Coinbase's Base network.
This initiative falls under Libre’s "Project HODL" strategy, which strives to broaden the real-world applications of tokenized assets.
Essentially it's an on-chain infrastructure that allows these RWAs to be used as collateral. The lending is all in stablecoins, not in fiat, and is being provided through existing lenders, like broker dealers, or Laser Digital, and now they are getting credit lines from providers like FAB,shared Avtar Sehra, CEO of Libre.
Avtar Sehra, CEO of Libre. Source: Linkedin
Innovating Finance Through Tokenization
At the MoU signing in the UAE, Sameh Al Qubaisi, FAB’s Head of Global Markets, highlighted the bank’s forward-thinking vision.
Through this initiative, FAB aims to enable secure credit facilities backed by tokenized assets, with automated processes ensuring robust risk management and complete regulatory compliance,he noted.
Sameh Al Qubaisi, FAB’s Head of Global Markets. Source: milkeninstitute.org
FAB, overseeing $335 billion in assets, is at the forefront of the institutional shift toward tokenized finance, advocating for secure, efficient, and compliant credit frameworks.
