Abu Dhabi signs agreement with Chainlink for blockchain use

Abu Dhabi Global Market (ADGM), a financial free zone overseeing more than $635 billion in assets, has signed a Memorandum of Understanding (MoU) with blockchain firm Chainlink (CRYPTO:LINK).

The agreement will enable ADGM to integrate Chainlink’s tools, including data feeds and interoperability solutions, according to an announcement on March 24.

The partnership is also intended to foster discussions on blockchain, artificial intelligence, and other emerging technologies in the region.

ADGM, established in 2015, operates within Abu Dhabi’s financial free zone under a legal system based on English Common Law.

The financial center plays a key role in strengthening Abu Dhabi’s financial sector and attracting international firms.

By the end of 2024, ADGM had 134 asset and fund managers overseeing 166 funds.

The number of financial institutions within its jurisdiction grew to 275, with 79 new firms joining, including BlackRock, PGIM, and Morgan Stanley.

The partnership comes amid growing cryptocurrency adoption in the United Arab Emirates.

According to the Henley Crypto Adoption Index 2024, the country ranked third among 28 nations in terms of crypto integration.

Additionally, crypto app downloads in the UAE increased by 41% in 2024 compared to the previous year.

Abu Dhabi has positioned itself as a hub for digital assets.

In December 2024, ADGM’s Financial Services Regulatory Authority officially recognised Tether’s USDT stablecoin as an accepted virtual asset, marking a step toward integrating cryptocurrency into the region’s financial system.

Dubai has also taken steps to regulate digital assets.

In February, it approved USDC (CRYPTO:USDC) and EURC (CRYPTO:EURC) as the first two stablecoins under its financial framework.

Meanwhile, Binance announced on March 12 that Abu Dhabi-based investment firm MGX had invested $2 billion into the exchange, one of the largest funding rounds in the industry’s history.

At the time of reporting, the Chainlink (LINK) price was $15.04.