Abu Dhabi Global Market Partners Chainlink to Bridge Finance and Blockchain

Abu Dhabi Global Market (ADGM), a prominent financial free zone with a significant asset management portfolio, has entered into a strategic partnership with Chainlink. This collaboration is aimed at bridging the gap between traditional finance and blockchain technology. The Memorandum of Understanding (MoU) signed between the two entities will enable ADGM to leverage Chainlink’s advanced tools, including data feeds and interoperability technology, to enhance its financial services.

The partnership is not just about technological integration; it also seeks to foster a broader discussion around emerging technologies such as blockchain and artificial intelligence within the region. This initiative aligns with ADGM’s mission to position Abu Dhabi as a leading global financial hub, attracting international firms and expanding the city’s financial services sector.

ADGM, established in 2015, operates under its own civil and commercial legal framework, based on English Common Law. This unique regulatory environment has been instrumental in drawing global financial institutions to the region. By the end of 2024, ADGM had hosted 134 asset and fund managers overseeing 166 funds, with a total of 275 financial institutions operating within its jurisdiction. Notable firms such as BlackRock, PGIM, and Morgan Stanley have set up operations in ADGM, highlighting its growing influence in the financial world.

The collaboration with Chainlink is part of a broader trend of increasing cryptocurrency adoption in the United Arab Emirates. The region has seen a significant rise in crypto app downloads and has been recognized for its openness to emerging technologies. Abu Dhabi, in particular, has become a hotspot for crypto firms, with the ADGM Financial Services Regulatory Authority officially recognizing Tether’s USDT stablecoin as an accepted virtual asset. This move is expected to further integrate cryptocurrencies into the local financial ecosystem.

In addition to Abu Dhabi, Dubai, another Emirate in the UAE, has also shown a welcoming stance towards cryptocurrency businesses. The region’s proactive approach to embracing new technologies is likely to continue attracting global financial players and fostering innovation in the financial services sector.