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Cryptocurrency News Articles

Abu Dhabi Global Market (ADGM) Partners with Chainlink to Develop Compliant Tokenization Frameworks

Mar 25, 2025 at 02:10 am

ADGM has entered into a formal collaboration with Chainlink, a leading provider of blockchain infrastructure services. The agreement will support the development of compliant frameworks for tokenized assets.

Abu Dhabi Global Market (ADGM), the international financial center in the capital of the United Arab Emirates (UAE), has announced a formal collaboration with Chainlink, a leading provider of blockchain infrastructure services, to develop compliant frameworks for tokenized assets. The partnership, structured through a Memorandum of Understanding (MoU), will also expand blockchain adoption and promote regulatory dialogue within the UAE and globally.

As noted in the press release, Chainlink and ADGM have penned an MoU that will see the two entities cooperate on promoting tokenization frameworks that meet regulatory standards. Both parties will be aiding each other to deliver an environment that ensures the secure and legal tokenization of assets in the financial markets.

As part of the collaboration, ADGM will be able to leverage Chainlink’s blockchain services, such as the verified data, interfacing solutions, and proof-of-reserve solutions. These tools will enhance connectivity between on-chain and off-chain systems and support the growth of a scalable digital asset environment.

The agreement further outlines a plan to host educational workshops and events in the UAE. These sessions will cover core topics including cross-chain infrastructure, AI integration, and the application of blockchain in financial services. The focus will be on building knowledge and regulatory clarity within the regional blockchain ecosystem.

Advancing Blockchain Innovation Through Chainlink Tools

Chainlink is known for its comprehensive suite of services facilitating the secure integration of blockchain technology. The platform has already enabled over USD 19 trillion in transaction value globally and is used by major financial institutions to ensure the smooth facilitation of transactions.

With this partnership, ADGM will be introducing Chainlink’s technology to support innovation within its regulated environment. Chainlink’s tools are expected to enhance liquidity, interoperability, and data transparency across digital markets operating under ADGM’s jurisdiction.

This initiative also builds upon ADGM’s existing efforts to support decentralized technologies through established legal and regulatory frameworks. The market has already introduced Distributed Ledger Technology (DLT) regulations to offer guidance to blockchain-based projects operating within its jurisdiction.

Meanwhile, amid the growing adoption of blockchain technology, the European Central Bank (ECB) is exploring the development of a blockchain-based payment system to process central bank money transactions.

Regulatory Collaboration

As part of the MoU, Chainlink and ADGM will engage in discussions surrounding regulatory practices for blockchain, AI, and emerging technologies. These discussions will support the establishment of industry-wide standards and best practices for blockchain implementation.

In addition, the partnership will see the rollout of educational programs to enhance tokenization, proof-of-reserves, and cross-chain operations. These initiatives will target participants across the UAE’s financial ecosystem.

Following the collaboration, LINK price surged, reaching $15 with a 5.74% increase in the past 24 hours. The trading volume also spiked by 79.46%, hitting nearly $399 million, reflecting renewed investor interest.

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Other articles published on Mar 26, 2025