Chainlink Teams Up With ADGM To Shape Blockchain Rules

In a new development, Abu Dhabi Global Market (ADGM) has teamed with Chainlink, a decentralized oracle network. This partnership, formed through a Memorandum of Understanding (MoU), focuses on blockchain regulations, tokenization, and new financial technology.

The UAE-based financial center is making this move to ensure digital assets and decentralized finance (DeFi) operate within a clear legal framework. This collaboration will support blockchain projects registered with ADGM by providing them with Chainlink’s tools and expertise.

ADGM Taps Chainlink To Set Clear Rules for Digital Assets

ADGM wants to be a global leader in blockchain technology. It is working with Chainlink to set clear rules on how blockchain and decentralized finance (DeFi) can be used safely and legally. The goal is to ensure digital assets follow financial laws while allowing new ideas to grow.

This partnership will also look at how blockchain and artificial intelligence (AI) can work together. It will help create guidelines for creating, transferring, and managing digital assets. This collaboration will give blockchain projects registered with ADGM access to Chainlink’s tools for secure data sharing and smart contract automation. 

It will also help them connect with different blockchain networks. Chainlink’s technology helps different blockchains share data, making it possible for smart contracts to use real-world information. The network has handled over $19 trillion in transactions, making it a major player in ADGM’s mission.

ADGM To Educate Businesses and Regulators  

Education is a key part of this partnership. ADGM and Chainlink will host workshops to discuss tokenization, blockchain connections, and security topics. These events will help businesses understand how to integrate blockchain technology into their operations while ensuring compliance with regulations. 

Regulators will gain insights about the risks and benefits of blockchain and how to make better decisions. ADGM and Chainlink are working together to build a safer and more reliable blockchain industry. Their goal is to support the growth of digital assets and decentralized finance.

In a statement, Hamad Sayah Al Mazrouei, CEO of ADGM’s Registration Authority, said this partnership aims to build trust in blockchain and help shape global rules. 

A Broad Industry Trend

The ADGM-Chainlink collaboration is part of a growing trend in the financial and regulatory sector. Government and financial regulators are increasingly working with blockchain companies to develop regulatory frameworks for digital assets, DeFi, and tokenization. 

Blockchain firms, including Ripple, are pushing for clear regulations and promoting mainstream adoption of digital assets. Hong Kong, Switzerland, and the European Union have been improving their crypto rules to ensure safety and compliance. 

Dubai’s Virtual Assets Regulatory Authority (VARA) works with blockchain companies to create clear guidelines. This has made Dubai a leading crypto hub and a big player in blockchain finance.