First Abu Dhabi Bank Partners with Libre Capital for Blockchain-Based Lending Using Tokenized Real-World Assets
First Abu Dhabi Bank (FAB), the UAE’s largest bank, has collaborated with Libre Capital to revolutionize collateralized lending by leveraging tokenized real-world assets (RWA) as collateral. This partnership aims to integrate traditional finance with blockchain technology, enhancing lending practices.
Key Highlights
- Libre Capital has tokenized approximately $150 million in high-value investment funds.
- FAB will offer stablecoin-backed loans secured by tokenized RWA.
- The initiative employs blockchain networks like Ethereum, Solana, and Polygon for seamless operations.
Transforming Collateralized Lending
Under this partnership, FAB and Libre Capital will enable approved lenders to use tokenized RWAs as collateral for loans. These RWAs represent digitized versions of investment products from institutions like Brevan Howard, Hamilton Lane, and BlackRock.
Libre Capital, established in March, has already issued $150 million in tokenized assets, including money-market funds and fixed-income products. FAB will pilot credit lines secured by these tokenized assets, merging traditional financial practices with blockchain innovation.
Innovation and Risk Management
FAB’s global markets head, Sameh Al Qubaisi, highlighted the bank’s commitment to innovation. The initiative integrates automated systems for risk management and regulatory compliance, ensuring a robust framework for blockchain-based lending.
Expanding Blockchain Ecosystems
The partnership prioritizes stablecoins over traditional fiat currencies for lending. It utilizes various blockchain networks, including Ethereum, Solana, Polygon, BASE, NEAR, and Aptos, to facilitate liquidity and efficient tokenized asset operations.
With a market capitalization of $335 billion, FAB’s involvement includes managing credit lines through broker-dealers and Laser Digital, crucial for the on-chain lending infrastructure. This collaboration signifies a pivotal step in combining traditional banking stability with blockchain’s transformative potential.
