First Abu Dhabi Bank (FAB) has moved part of its digital asset financing infrastructure into operational use, following a two-way transfer of a digital asset portfolio into and out of regulated custody through Komainu. This capability allows digital asset portfolios to move as collateral, which the bank says is a building block for institutional financing transactions, including digital asset-backed repurchase agreements.
The bank is now working towards its first transactions, with the transfers putting FAB Global Markets’ collaboration with Komainu, a regulated digital asset custodian, into operational use. This arrangement integrates Komainu’s custody and connectivity capabilities with FAB’s existing infrastructure, allowing the bank to move digital assets both into and out of the custody environment.
What the transfers mean for FAB’s digital asset capabilities
The transfers validate the infrastructure needed to support institutional digital asset financing, according to the bank. This development is part of FAB’s work to connect traditional financial markets with the digital asset ecosystem and develop digital asset capabilities for institutional clients.
FAB has also completed live tokenised deposit transactions with Citi through Swift Ledger. Additionally, the bank issued a digitally native green bond on Euroclear’s D-FMI, which it describes as the first of its kind in MENA.
Why it matters for institutional clients
The ability to move digital assets as collateral is a key aspect of institutional digital asset financing. FAB’s collaboration with Komainu enables the bank to provide this capability to its institutional clients, using regulated custody and instant settlement. This can facilitate digital asset-backed repurchase agreements and other financing transactions.
The role of Komainu in FAB’s digital asset financing infrastructure
Komainu’s regulated digital asset custodian capabilities play a crucial role in FAB’s digital asset financing infrastructure. The company’s custody and connectivity capabilities are integrated with FAB’s existing infrastructure, enabling the bank to move digital assets securely and efficiently.
