- Abu Dhabi’s ADGM and Chainlink sign an MoU to develop tokenization and blockchain frameworks.
- ADGM will gain access to Chainlink’s technical expertise and advanced services.
- This collaboration will also include events and educational workshops to drive adoption.
Abu Dhabi Global Market (ADGM), an international financial center of UAE’s capital with over $635 billion in assets, has signed a Memorandum of Understanding (MoU) with Chainlink to develop compliant frameworks for digital assets and foster blockchain innovation. This partnership aims to enhance trust in decentralized systems and support the growing adoption of tokenization.
Chainlink, which connects real-world data to blockchain smart contracts, has facilitated over $19 trillion in blockchain transactions. On the other hand, ADGM has actively supported digital assets and financial technology innovation. Consequently, the agreement provides ADGM with access to Chainlink’s blockchain services, including verified data, interfacing solutions, and proof-of-reserve solutions.
The collaboration seeks to address challenges in tokenization, including legal recognition, asset-backed security, and risk management. By providing technical expertise and regulatory support, their joint efforts could influence regulatory approaches on a global scale, reinforcing Abu Dhabi’s leadership in blockchain innovation.
Related: Soneium Partners with LINE to Boost Web3 Adoption: Report
Beyond regulatory development, the collaboration includes educational initiatives aimed at businesses and regulators. Both firms will host workshops and discussions that will cover topics such as tokenization and decentralized finance (DeFi). Hamad Sayah Al Mazrouei, CEO of ADGM’s Registration Authority, highlighted the significance of the partnership, stating,
This strategic alliance is a significant step in further solidifying ADGM’s leadership in enabling blockchain innovation and enhancing alignment in the regulatory approach globally. By collaborating with Chainlink, we are aiming to set a global benchmark that spearheads transparency, security, and trust across the blockchain space.
UAE’s Growing Role in Blockchain
Ever since early times, the UAE has had a positive outlook towards blockchain and cryptocurrency. As a result, the country has seen 42% year-on-year growth in crypto transactions, receiving $34 billion between July 2023 and June 2024.
Multiple metrics also show that there was a 41% increase in crypto app downloads in 2024, and it has ranked 3rd out of 28 countries in the Henry Crypto Adoption Index 2024. This is particularly evident in cities like Dubai and Abu Dhabi, which have shown significant growth in blockchain and crypto adoption. In December 2024, Abu Dhabi’s ADGM Financial Services Regulatory Authority officially recognized Tether’s USDT stablecoin. Along with that, Binance secured a $2 billion investment in MGX, a state-owned technology investment firm based in Abu Dhabi.
As blockchain technology continues to revolutionize markets, this collaboration is expected to play a pivotal role in the growth of innovation. Moreover, it not only strengthens Abu Dhabi’s position but also sets a precedent for regulatory advancements that could positively impact the crypto market.
