Chainlink partners with ADGM to explore blockchain regulation

Abu Dhabi Global Market has signed a Memorandum of Understanding with Chainlink to explore blockchain regulation, tokenization, and emerging technologies. 

The agreement will support blockchain projects registered with Abu Dhabi Global Market by providing access to Chainlink’s infrastructure and expertise. It also includes plans for educational events on topics like cross-chain interoperability and proof of reserves.

The partnership aims to set regulatory standards for blockchain and artificial intelligence. This could help establish rules for how digital assets are created, transferred, and managed while ensuring compliance with financial regulations.

Abu Dhabi Global Market is an international financial center in the United Arab Emirates that regulates financial services and digital assets. Chainlink (LINK) is a blockchain company that helps connect real-world data to smart contracts, which are self-executing agreements on a blockchain. 

Tokenization refers to converting real-world assets, such as stocks or real estate, into digital tokens that can be traded on a blockchain.

Chainlink has facilitated over $19 trillion in transactions by providing data and blockchain interoperability services. These services allow different blockchain networks to communicate and share data. Many financial institutions use Chainlink’s technology to verify and secure blockchain transactions.

Hamad Sayah Al Mazrouei, CEO of ADGM’s Registration Authority, said the partnership would help shape global regulatory approaches and promote trust in blockchain systems. 

Tokenization and interoperability

As part of the MoU, ADGM and Chainlink will organize workshops and discussions on tokenization, interoperability, and emerging blockchain standards. These efforts aim to educate businesses and regulators about blockchain’s potential benefits and risks.

ADGM aims to be a global hub for blockchain innovation by establishing regulatory frameworks for decentralized ledger technology and collaborating with Chainlink to create a compliant and scalable ecosystem for digital assets and DeFi.