First Abu Dhabi Bank (FAB), the largest financial institution in the UAE, has signed a Memorandum of Understanding (MoU) with Libre Capital, a blockchain-based investment infrastructure firm backed by Further Ventures, to explore collateralized lending using tokenized Real World Assets (RWAs). This partnership aims to revolutionize Net Asset Value (NAV) financing by leveraging tokenized assets and blockchain technology to deliver transparent, efficient, and automated financial solutions.
Integrating RWAs into Lending Ecosystems
Under the MoU, FAB and Libre Capital will combine their expertise to develop a lending ecosystem that allows accredited and institutional borrowers to secure loans using tokenized fund assets as collateral. Backed by Further Ventures, Libre Capital brings cutting-edge blockchain infrastructure to this collaboration, enabling the development of innovative financial solutions.
The initiative will integrate Libre’s blockchain primary issuance infrastructure with FAB’s extensive financial network, enabling efficient credit facilities backed by high-quality tokenized assets.
In the initial phase, the partnership will pilot a credit line for stablecoin lending, collateralized by tokenized money market funds issued by globally recognized asset managers. The project will leverage blockchain features, including:
- Automated collateral management.
- Real-time NAV updates via oracles.
- Smart contract-enabled loan monitoring.
Leaders’ Vision for the Future of Finance
Sameh Al Qubaisi, FAB’s Group Head of Global Markets, emphasized the bank’s role in driving financial innovation within the UAE, stating: “Our collaboration with Libre Capital aligns with FAB’s commitment to adopting cutting-edge financial technologies. By leveraging tokenized assets and blockchain, we aim to create a secure and efficient lending ecosystem that ensures robust risk management and regulatory compliance.”
Dr. Avtar Sehra, Founder and CEO of Libre Capital, highlighted the transformative potential of the partnership, noting: “This partnership redefines capital markets by integrating RWAs with blockchain technology, laying the foundation for seamless and secure global liquidity access.”
Advancing Financial Innovation in the UAE
This partnership reflects the UAE’s vision to establish itself as a global hub for blockchain and financial innovation. By bridging traditional finance with decentralized technologies, FAB and Libre Capital aim to set new standards for efficiency, security, and regulatory adherence in the financial sector. Libre’s connection with Further Ventures strengthens its ability to deliver groundbreaking solutions, reinforcing Abu Dhabi’s leadership in digital asset innovation.
