- FAB partners with Libre Capital to pilot blockchain-based stablecoin lending using tokenized real-world assets as collateral.
- Libre’s $150M in tokenized assets includes Brevan Howard funds, Hamilton Lane products, and BlackRock’s money-market fund.
- FAB manages liquidity for Libre’s assets on Ethereum, Polygon, Solana, NEAR, Aptos, and BASE, ensuring secure and compliant credit lines.
First Abu Dhabi Bank (FAB) has entered a Memorandum of Understanding (MoU) with Libre Capital to advance blockchain-based collateralized lending. Libre Capital, supported by WebN Group and Nomura’s Laser Digital, specializes in tokenization, and this partnership emphasizes FAB’s commitment to integrating innovative financial solutions.
Tokenized Assets Gain Momentum
Libre Capital, which began issuing tokenized assets in March, has already facilitated approximately $150 million worth of tokenized investments. These include Brevan Howard funds, fixed-income products from Hamilton Lane, and BlackRock’s money-market fund. The MoU enables FAB to pilot credit lines for lenders to issue stablecoin loans, using Libre’s tokens as collateral.
Notably, this move aligns with the increasing interest among crypto asset holders to utilize their tokens for borrowing. Libre’s tokens, previously proposed for collateral use on MakerDAO’s platform, are now attracting attention from significant financial players like FAB.
Leveraging Public Blockchain Networks
Under this partnership, FAB will manage liquidity by offering credit lines for Libre’s assets across major blockchain networks. These include Ethereum, Polygon, Solana, NEAR, Aptos, and Coinbase’s BASE. Libre’s initiative, named “Project HODL,” aims to optimize decentralized liquidity through collateralized lending using stablecoins instead of traditional fiat currency.
More so, according to Libre’s founder and CEO, Dr. Avtar Sehra, the infrastructure focuses on enabling real-world assets to serve as on-chain collateral. Lending processes involve stablecoins provided through established financial intermediaries, broker-dealers, or Laser Digital. FAB’s involvement as a credit line provider highlights the growing acceptance of blockchain-backed financial services.
A Step Towards Innovation and Compliance
Sameh Al Qubaisi, FAB’s group head of global markets, emphasized the bank’s commitment to innovation in the UAE’s financial sector. He highlighted that the partnership ensures secure credit facilities backed by tokenized assets while adhering to strict regulatory compliance standards.
Moreover, the initiative introduces automated processes for risk management, showcasing the potential of blockchain technology in reshaping lending practices.
Therefore, this collaboration represents a significant stride in the adoption of blockchain solutions within traditional banking systems. By combining tokenization expertise with FAB’s extensive financial resources, the partnership could pave the way for broader integration of blockchain-based lending mechanisms.
