According to CoinDesk, First Abu Dhabi Bank (FAB) has entered into a Memorandum of Understanding (MoU) with Libre Capital, a tokenization specialist supported by Brevan Howard’s WebN Group and Nomura’s Laser Digital. This collaboration aims to facilitate blockchain-based collateralized lending using real-world asset (RWA) tokens. Since its launch in March, Libre has issued approximately $150 million in tokenized versions of Brevan Howard funds, Hamilton Lane's fixed-income products, and a BlackRock money-market fund. Under the MoU, FAB is piloting a credit line for approved lenders to offer stablecoin lending, using these Libre-issued tokens as collateral.
The initiative allows holders of various crypto assets to use their tokens as collateral for borrowing. Libre, which had previously suggested using its blue-chip RWA tokens as collateral on a MakerDAO forum, has now involved a $335 billion bank in this venture. FAB will manage liquidity by providing lending credit lines on Libre’s assets across public blockchain networks such as Ethereum, Polygon, Solana, NEAR, Aptos, and Coinbase’s layer 2 network BASE. This collateralized lending service is part of Libre’s “Project HODL,” which stands for High-Yield Optimized Decentralized Liquidity. Dr. Avtar Sehra, founder and CEO of Libre, explained that the project focuses on adding utility to their assets under management (AUM) through collateralized lending. The lending is conducted entirely in stablecoins, facilitated by existing lenders like broker-dealers or Laser Digital, with credit lines now being extended by providers such as FAB.
During the MoU signing in the UAE, Sameh Al Qubaisi, group head of global markets at FAB, emphasized the bank’s dedication to fostering innovation in the region. He stated that through this initiative, FAB aims to enable secure credit facilities backed by tokenized assets, with automated processes ensuring robust risk management and full regulatory compliance. This partnership highlights FAB's commitment to advancing financial technology and exploring new avenues in the digital asset space.