Chainlink collaborates with ADGM on blockchain regulatory exploration

Abu Dhabi Global Market has entered into a Memorandum of Understanding with Chainlink to delve into the regulation of blockchain, tokenization, and other innovative technologies. The agreement will furnish blockchain projects enrolled with Abu Dhabi Global Market with access to Chainlink's facilities and proficiency. It also entails arrangements for educational gatherings on subjects such as cross-chain interoperability and proof of reserves.

The collaboration strives to establish regulatory benchmarks for blockchain and artificial intelligence. This may aid in formulating rules for the creation, transfer, and management of digital assets, all while adhering to financial regulations.

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

Tokenization refers to the transformation of tangible assets, like stocks or real estate, into digital tokens that can be exchanged on a blockchain.

Chainlink has enabled over $19 trillion in transactions by offering data and blockchain interoperability services. These services facilitate communication and data sharing between different blockchain networks. Many financial institutions employ Chainlink's technology to confirm and safeguard blockchain transactions.

Hamad Sayah Al Mazrouei, CEO of ADGM's Registration Authority, expressed that the partnership would contribute to shaping international regulatory methods and promoting trust in blockchain systems.

Tokenization and interoperability

In accordance with the MoU, ADGM and Chainlink will coordinate workshops and discussions on tokenization, interoperability, and upcoming blockchain standards. These endeavors aim to inform businesses and regulators about the potential advantages and risks of blockchain.

ADGM's objective is to become a global center for blockchain innovation by creating regulatory frameworks for decentralized ledger technology and working with Chainlink to develop a compliant and scalable ecosystem for digital assets and DeFi.