First Abu Dhabi Bank has completed a two-way transfer of a digital-asset portfolio through Komainu, putting a custody connection for institutional financing into operational use. The Abu Dhabi bank said on November 3 that assets moved into and back out of Komainu's regulated custody environment, with the transfers settling instantly. The exercise tested whether FAB Global Markets could connect its existing infrastructure to an external digital-asset custodian in both directions. That capability is relevant when collateral must be delivered, controlled and later returned under a financing agreement. It is a technical and operational milestone, rather than evidence that a client financing transaction has already been completed.

What the transfer demonstrated

The two-way movement matters because institutional financing requires more than depositing assets with a custodian. A bank must also be able to release, return or reposition collateral under defined controls. FAB says the completed transfers validated the infrastructure needed to move portfolios into and out of custody. Komainu described the framework as integrated with FAB's established systems and governance processes. Both firms reported instant settlement, although they did not publish transaction identifiers, timing data or an independent technical audit that would allow the result to be reproduced.

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Collateral financing is the next use

FAB intends to use the custody rail as a building block for institutional financing backed by digital assets. One potential application is a repurchase agreement, or repo, in which an institution transfers assets as collateral while borrowing cash or another asset and agrees to reverse the transaction later. Regulated custody can separate the collateral from an institution's trading venue and provide clearer control over asset movements. FAB says its digital-asset financing capabilities are available to institutional clients, but the bank is still working toward its first transactions.

Important details remain undisclosed

The announcement did not identify the digital assets transferred, the portfolio's value, the participating wallet addresses or any client. It also did not state whether the test involved assets held under Komainu's Dubai entity or another group company. Those omissions limit conclusions about scale, asset coverage and commercial demand. Asset Servicing Times independently reported the completion of the two-way transfers and the framework's intended financing use, but its account also relies on information supplied by the firms. The milestone therefore confirms operational readiness claimed by FAB and Komainu, not financing volume or adoption.

A regulated custody connection in the UAE

Komainu MEA FZE appears on Dubai's Virtual Assets Regulatory Authority register with an active licence for custody services, including custodial staking and collateral-wallet services, subject to serving institutional and qualified investors. That status supports the regulated-custody context of the collaboration, but it does not by itself approve every future financing product or transaction. Legal structure, collateral eligibility, valuation, margining and default procedures will still have to be defined for each service. FAB's broader digital-asset programme also includes tokenised-deposit work with Citi through Swift Ledger and a digitally native green bond issued through Euroclear's D-FMI. The custody transfer adds another operational component to that programme. The next meaningful evidence will be a named financing transaction, disclosed collateral terms and verifiable information about volumes, settlement controls and client use.

Sources

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