First Abu Dhabi Bank Joins Tokenization Firm Libre for Collateralized Lending

First Abu Dhabi Bank (FAB) has signed a Memorandum of Understanding (MoU) with Libre Capital, the tokenization specializer backed by Brevan Howard’s WebN Group and Nomura’s Laser Digital, to bash blockchain-based collateralized lending utilizing existent satellite plus (RWAs) tokens. Since going unrecorded successful March, <a href="https://www.coindesk.com/business/2024/03/19/brevan-howard-backed-tokenization-firm-libre-goes-live" target="_blank">Libre</a> has issued astir $150 cardinal of tokenized versions of Brevan Howard funds, Hamilton Lane's fixed-income benignant products, and a BlackRock money-market fund. Under the MoU, First Abu Dhabi Bank is piloting a recognition enactment for approved lenders to supply stablecoin lending with those Libre issued tokens arsenic collateral. Holders of each sorts of crypto assets enthusiastically usage their tokens arsenic collateral to get against. In this lawsuit Libre, which already projected the usage of its bluish spot RWA tokens arsenic collateral connected a <a href="https://forum.sky.money/t/tokenisation-grand-prix-application-libre/25213" target="_blank">MakerDAO forum successful September</a>, has brought a $335 cardinal slope into the mix. FAB volition beryllium handling liquidity done lending recognition lines connected Libre’s assets connected nationalist chains similar Ethereum, Polygon, Solana, NEAR, Aptos and Coinbase’s layer2 web BASE. Libre’s collateralized lending offering is portion of an inaugural the steadfast calls “Project HODL” (short for High-Yield Optimized Decentralized Liquidity). “We've been moving connected adding inferior to our AUM successful the signifier of collateralized lending,” said Dr. Avtar Sehra, laminitis and CEO of Libre successful an interview. “Essentially it's an on-chain infrastructure that allows these RWAs to beryllium utilized arsenic collateral. The lending is each successful stablecoins, not successful fiat, and is being provided done existing lenders, similar broker dealers, oregon Laser Digital, and present they are getting recognition lines from providers similar FAB.” At a signing of the MoU successful the UAE, Sameh Al Qubaisi, radical caput of planetary markets astatine FAB said the Libre inaugural underscores the bank’s committedness to thrust innovation successful the region. “Through this initiative, FAB aims to alteration unafraid recognition facilities backed by tokenized assets, with automated processes ensuring robust hazard absorption and implicit regulatory compliance,” AlQubaisi said successful a statement.