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First Abu Dhabi Bank (FAB), the biggest bank in the <a href="https://optimisus.com/news/crypto-news/the-uae-exempts-crypto-transactions-from-vat-starting-november-15/" rel="noopener noreferrer nofollow">UAE</a>, has partnered with tokenization expert Libre Capital to change collateralized lending by using real-world assets (RWA) in a digital way.This partnership seeks to improve lending by letting approved lenders use tokenized traditional investment assets as collateral for loans backed by stablecoins. The tokens are digital products from well-known financial institutions like Brevan Howard, Hamilton Lane, and BlackRock, combining traditional finance with blockchain technology.Libre Capital started in March and has issued about $150 million in tokenized assets, including valuable investment products. This partnership allows FAB to test a program that provides credit lines backed by these tokenized assets.Sameh Al Qubaisi, FAB’s group head of global markets, stressed the bank&#39;s focus on innovation. He pointed out the program&#39;s automated processes that help maintain strong risk management and meet regulatory requirements.The initiative shows a rising trend of using crypto assets for lending, with FAB&#39;s strong infrastructure offering stability. FAB wants to build a lending system on the blockchain by focusing on <a href="https://optimisus.com/market/market-news/tether-is-launching-a-uae-dirham-pegged-stablecoin/" rel="noopener noreferrer nofollow">stablecoins</a> instead of regular money.The project will use different blockchain networks like Ethereum, Solana, and Polygon to help manage and operate tokenized assets smoothly. FAB, with a market value of $335 billion, will manage credit lines through broker-dealers and Laser Digital. These are important for setting up this new lending system.

First Abu Dhabi Bank joins with Libre Capital for blockchain-based lending with tokenized RWA as collateral

Optimisus

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