First Abu Dhabi Bank (FAB) has entered into a Memorandum of Understanding (MoU) with Libre Capital, a technology firm focused on blockchain-based investment infrastructure and supported by Further Ventures. This collaboration aims to explore innovative methods for collateralized lending utilizing public blockchains and tokenized real-world assets (RWAs).
The partnership will integrate Libre’s on-chain primary issuance capabilities and lending functions with FAB’s financial expertise and liquidity, creating a fully automated, transparent, and efficient lending ecosystem. By employing high-quality tokenized fund assets as collateral, this initiative seeks to redefine Net Asset Value (NAV) financing, thereby opening new avenues for accredited and institutional borrowers on public blockchain networks.
This MoU lays the groundwork for a multi-phase strategy in on-chain collateralized lending, potentially transforming traditional lending models. The initial phase will test a credit line for stablecoin lending, secured by tokenized money market funds from globally recognized asset managers. The system will utilize blockchain technology for automated collateral management, real-time NAV updates through oracles, and smart contract-enabled loan oversight.
With features like daily liquidity, seamless fund disbursement, and automated risk management, this initiative positions both organizations as frontrunners in blockchain-enabled NAV financing. It also sets the stage for institutional engagement in compliant tokenized markets, bridging the gap between traditional finance and decentralized ecosystems while ensuring regulatory compliance across various jurisdictions.
Libre’s technology heralds a new era of frictionless finance by enabling institutional or accredited investors to borrow against their holdings in tokenized financial assets. These assets are pledged to platform lenders and securely locked in smart contract vaults throughout the loan period. This innovative lending model offers exceptional efficiencies, including expedited loan disbursement, cost savings, and complete on-chain transparency.
Sameh AlQubaisi, Group Head of Global Markets at FAB, remarked, “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 tokenized 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 Capital, stated, “This partnership epitomizes 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 Alhammadi, Managing Partner of Further Ventures, added that “At Further Ventures, we strongly believe in the transformative impact that tokenization 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 investors in Libre include Nomura’s Laser Digital and WebN Group.
Libre Capital
Libre is developing an investment infrastructure that allows asset managers to connect seamlessly with distributors while providing unparalleled access to global alternative investment funds. Additionally, Libre is working on value-added services within the alternative assets ecosystem such as collateralized lending and automated rebalancing. Currently, Libre offers its tokenized funds exclusively to institutional and accredited investors.
First Abu Dhabi Bank (FAB)
Based in the United Arab Emirates, First Abu Dhabi Bank (FAB) ranks among the largest and safest financial institutions globally. As of September 2024, it boasts total assets of AED 1.2 trillion (USD 335 billion) and holds a strong credit rating of Aa3/AA-/AA- from Moody’s, S&P, and Fitch respectively.
FAB provides diverse financial services across five business units: Investment Banking, Corporate and Commercial Banking, Consumer Banking, Private Banking, and Global Markets through an extensive international network spanning 20 markets worldwide. Listed on the Abu Dhabi Securities Exchange (ADX), FAB is recognized as a leading provider of Islamic finance and a pioneer in sukuk issuance.
Further Ventures
Further Ventures focuses on building and investing in companies that are shaping the future of financial markets. Their global platform connects next-generation financial infrastructure in emerging economies with global capital markets. They enable institutional partners to securely transfer and store their assets while facilitating trading of structured products and tokenizing funds among other services.
