First Abu Dhabi Bank (FAB), the largest banking entity in the Middle East, will revolutionize lending with Libre Capital through blockchain technology.
First Abu Dhabi Bank (FAB), the Middle East’s largest banking entity, is set to revolutionize lending with Libre Capital through blockchain technology. A Memorandum of Understanding (MoU) between both firms in the UAE led to this initiative, introducing a lending scheme that utilizes collateralized loans in stablecoin, backed by tokenized real-world assets (RWAs).
Launched earlier this year, Libre Capital has already tokenized around $150 million in assets, including funds from Brevan Howard, Hamilton Lane, and BlackRock. Tokenized assets digitally represent the underlying real investment vehicles, enabling investors to utilize them as collateral in a decentralized, blockchain-based environment.
Part of Libre’s Project HODL, this blockchain-based lending program runs on multiple blockchain networks — Ethereum, Polygon, Solana, and Coinbase’s BASE — to ensure elasticity and accessibility. It aligns with the platform’s digital-first nature by facilitating lending in stablecoins rather than fiat currency.
Highlighting the innovative infrastructure for the program, Libre’s founder and chief executive officer, Dr. Avtar Sehra, said, “This enhances utility because it allows RWAs to act as collateral through an on-chain mechanism.” The initiative is further supported by existing financial institutions such as Brevan Howard’s WebN Group and Nomura’s Laser Digital, adding credibility.
FAB, thus, embodies the rapidly eroding distinction between traditional banking and blockchain innovation. Being one of the world’s largest banks, with an asset base of $335 billion, FAB participation marks the increasing interest in institutional adoption of digital asset-backed lending.
Describing the collaboration, Sameh Al Qubaisi, global markets group head at FAB, said that innovation, coupled with regulation, will provide a safe yet transformative lending landscape. The MoU will facilitate the pilot phase as FAB provides credit lines to the approved lenders, while Libre’s tokenized assets will be integrated into its liquidity management framework.
Ultimately, this program interweaves traditional finance and blockchain to pave the way for a more inclusive and advanced financial future.
