FAB Partners with Libre Capital for Blockchain-Based Lending Innovation

Collateralized Credit Lines with RWA Tokens

The UAE’s First Abu Dhabi Bank (FAB) has entered into a strategic partnership with Libre Capital to pioneer blockchain-based lending solutions using real-world asset (RWA) tokens. This collaboration is set to revolutionize collateralized credit lines, allowing lenders to offer loans backed by RWA tokens issued by Libre.

Integration of Traditional Finance and Blockchain Technology

Libre Capital, in collaboration with Brevan Howard’s WebN Group and Nomura’s Laser Digital, has made significant progress in tokenizing $150 million in assets since its launch. These assets include fixed-income products from renowned institutions like Hamilton Lane and BlackRock. The partnership between FAB and Libre is geared towards testing a new credit line system that enables stablecoin borrowing using tokenized assets as collateral.

Enhancing Asset Value through Lending

Dr. Avtar Sehra, CEO of Libre Capital, highlighted the value enhancement of assets through the introduction of a lending dimension. The loans, denominated in stablecoins, will be managed by established institutions like FAB, ushering in a more secure and compliant ecosystem for tokenized financial systems. FAB’s global markets head, Sameh Al Qubaisi, underscored the bank’s commitment to driving financial innovation in the UAE through secure and innovative lending practices.