The Abu Dhabi Securities Exchange (ADX) is considering the development of a blockchain infrastructure for issuing crypto assets.
In cooperation with the Central Securities Depositories (CSD) and under the patronage of the International Securities Service Association (ISSA), the ADX issued a “thought paper” seeking to identify the necessary technical and operational criteria for issuing digital assets and supporting financial institutions in offering crypto assets.
Rashed Al Blooshi, Chief Executive of ADX, said that Abu Dhabi needs to upgrade its existing financial market infrastructure and incorporate standards of governance within their systems to prevent market fragmentation, increase investor confidence and raise the quality of its infrastructure. He added that as a member of ISSA Central Securities Depositories Working Group, ADX will work on the further development and implementation of distributed ledger technology based on blockchain, as well as contribute in the development of the crypto asset infrastructure study.
“Financial market infrastructure plays a pivotal role in supporting crypto markets, offering investor protection, preventing market fragmentation, as well as making it possible for financial institutions to provide advanced services in the field of crypto assets,” Al Blooshi said. “At ADX, we embrace new and innovative technology and are always looking to capitalize on advancements in FinTech, particularly in crypto assets to optimize the benefits we offer to our investors and stakeholders.”
In September of this year, Abu Dhabi Global Market (ADGM) announced plans to create a FinTech digital sandbox that will allow banks to source and procure FinTech and blockchain solutions locally and globally, run tests digitally on the platform, and adopt and orchestrate the best ones that meet their business needs.
Last month, Obaid Saif al-Zaabi, head of United Arab Emirates (UAE)’s national securities agency, said that the country will be introducing initial coin offerings (ICOs) next year to provide companies with a fresh way to raise money. At the time, he said that the Emirates Securities & Commodities Authority (ESCA) was drafting regulations for ICOs with international advisers and was working with the Abu Dhabi and Dubai stock markets to develop trading platforms for the offer.
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