First Abu Dhabi Bank (FAB) has moved part of its digital asset financing infrastructure into operational use.

The step follows a two-way transfer of a digital asset portfolio into and out of regulated custody through Komainu, with instant settlement in both directions.

This capability allows digital asset portfolios to move as collateral. According to FAB, such transfers are a building block for institutional financing transactions, including digital asset-backed repurchase agreements.

While these financing capabilities are already available to institutional clients, the bank is now working towards its first transactions.

In addition, the transfers put 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.

The bank said the transfers show it can move digital assets both into and out of the custody environment.

In turn, this validates the infrastructure needed to support institutional digital asset financing, the bank added.

The custody transfers add to other recent digital asset initiatives at the bank.

Earlier, FAB completed live tokenised deposit transactions with Citi through Swift Ledger.

Separately, it issued a digitally native green bond on Euroclear’s D-FMI, which the bank describes as the first of its kind in MENA.

FAB said these initiatives are part of its work to connect traditional financial markets with the digital asset ecosystem and develop digital asset capabilities for institutional clients.

Featured image: Edited by Fintech News UAE, based on image by First Abu Dhabi Bank via its Press Release.