By
Svetlana Soroka
April 30th, 2024
Hamad Al Mazrouei, CEO of the ADGM registration authority, described the collaboration as a “key milestone” in strengthening ADGM’s position in the blockchain sector.
Abu Dhabi’s Global Market (ADGM), an international financial center in the capital city of the United Arab Emirates, has joined forces with the Solana Foundation to drive advancements in blockchain innovation.
The collaboration that was formalized through a memorandum of understanding (MoU) aims to explore opportunities for developing distributed ledger technology (DLT) solutions and blockchain-related projects in the region.
ADGM to Work with Solana
Under the agreement, ADGM and the Solana Foundation will collaborate to expand existing projects within the international financial center, fostering joint initiatives focused on nurturing the growth of the blockchain ecosystem in Abu Dhabi.
The international financial center said the move aligns with its mission of becoming a central hub for innovative solutions following the introduction of its regulatory framework for the creation of crypto-related projects and decentralized autonomous Organizations (DAO) known as DLT Foundations Regulations in November last year.
Hamad Al Mazrouei, CEO of the ADGM registration authority, described the collaboration as a “key milestone” in strengthening ADGM’s position in the blockchain sector. He emphasized the importance of regulation and compliance in ensuring robust and sustainable development, expressing confidence that the partnership would bolster the blockchain ecosystem and drive further innovative initiatives in Abu Dhabi and the UAE.
“We are excited to partner with Solana to pioneer the future of technology, and further enhance the level of knowledge in the space of blockchain by emphasizing the value of regulation and compliance in ensuring robust and sustainable development. We are confident that this significant collaboration will lead to bolstering the blockchain ecosystem and driving further innovative initiatives in Abu Dhabi and the UAE,” said Mazrouei.
Progressive Regulatory Approach
Founded in 2015 and operating under English law with its own court system, ADGM has been rapidly expanding its presence in the blockchain and crypto sphere.
Last year, the global financial center saw the establishment of the $1 billion Venom Ventures Fund and the launch of the Hub71+ Digital Assets initiative with $2 billion in backing. The partnership with the Solana Foundation marks another significant step for ADGM in solidifying its position as a leading hub for blockchain ventures.
Solana, renowned for its high-performance blockchain network, has been experiencing a surge in developer activity and public interest in recent months after the 2022 market winter.
Last month, the Solana Foundation revealed that the network now boasts of over 2500 active monthly developers. In 2023, the protocol only had about 946 according to data from Electric Capital.
Lily Liu, president of the Solana Foundation, commended ADGM’s progressive regulatory approach, highlighting the positive outlook for the partnership. Abu Dhabi’s growing prominence as a crypto hub has attracted leading companies from across the globe, drawn by its strategic location and favorable regulatory environment.
I spent the day with the @ADGlobalMarket leadership, and have come away with great optimism about their progressive, consultative approach to regulation.
I am excited to share that we are collaborating with Abu Dhabi Global Markets to support ecosystem teams in accessing the… pic.twitter.com/MZHEKOKtEm
— Lily Liu (@calilyliu) February 7, 2024
Meanwhile, ADGM’s efforts to foster blockchain innovation align with Abu Dhabi’s broader initiative to support the growth of the blockchain and crypto industry. The emirate recently introduced a $2 billion initiative to promote blockchain and Web3 technologies. With this fund, the emirate aims to further establish itself as a key player in the global blockchain ecosystem.