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First Abu Dhabi Bank and Libre Capital Sign MoU to Explore RWA Collateralised Lending
First Abu Dhabi Bank (FAB) has signed a Memorandum of Understanding (MoU) with Libre Capital, a technology firm specialising in blockchain-based investment infrastructure and backed by Further Ventures, to explore innovative approaches to collateralised lending using public blockchains and tokenised RWAs.
The collaboration will combine Libre's onchain primary issuance infrastructure and lending capabilities with FAB's financial expertise and liquidity to create a fully automated, transparent, and efficient lending ecosystem. By using high-quality tokenised fund assets as collateral, the initiative aims to redefine Net Asset Value (NAV) financing, thereby unlocking new opportunities for accredited and institutional borrowers on public blockchain networks.
This MOU sets the foundation for a multi-phased approach to onchain collateralised lending, with the potential to transform traditional lending paradigms. The initial phase will pilot a credit line for stablecoin lending, backed by tokenised money market funds created by globally recognised asset managers. The system will leverage blockchain technology for automated collateral management, real-time NAV updates via oracles, and smart contract-enabled loan monitoring.
With daily liquidity, seamless fund disbursements, and automated risk management, this initiative positions both organisations as leaders in blockchain-enabled NAV financing. It also paves the way for institutional participation in compliant tokenised markets, thereby bridging the gap between traditional finance and decentralised ecosystems, while ensuring adherence to regulatory requirements across all jurisdictions.
Libre's technology ushers in a new era of frictionless finance by allowing institutional or accredited investors to borrow against their holdings in tokenised financial assets. These assets are pledged to platform lenders and securely locked in smart contract vaults for the loan duration. This innovative lending format delivers unmatched efficiencies, including faster loan disbursement, cost-effectiveness, and complete onchain transparency.
Speaking at the signing, Sameh Al Qubaisi, Group Head of Global Markets, highlighted, "FAB's involvement in this initiative underscores our commitment to drive innovation in the UAE's financial landscape. Through this initiative, FAB aims to enable secure credit facilities backed by tokenised assets, with automated processes ensuring robust risk management and complete regulatory compliance. This venture aligns seamlessly with the UAE's vision to become a global hub for financial and technological excellence."
Dr. Avtar Sehra, founder and CEO of Libre, emphasised, "This partnership epitomises the transformative power of blockchain and RWAs in reimagining capital markets. Together with FAB, we are laying the foundation for a future where access to liquidity is seamless, secure, and globally interconnected."
Faisal Al Hammadi, Managing Partner of Further Ventures, added "At Further Ventures, we strongly believe in the transformative impact that tokenisation will have in reshaping the delivery of financial services. Through this partnership, we demonstrate how the UAE can continue to be a leader in digital asset adoption across institutional use cases."
Early shareholders in Libre include Nomura's Laser Digital and WebN Group.
PR Contact:
Libre Capital
[email protected]
SOURCE: Libre Capital
L.Durand--AMWN