ADGM and Chainlink Join Forces to Pave the Way for Blockchain Innovation and Asset Tokenisation in the UAE

The Abu Dhabi Global Market (ADGM) has entered into a Memorandum of Understanding with Chainlink aimed at boosting awareness of Web3 and investigating innovative blockchain applications. This collaboration, disclosed on March 24, signifies ADGM’s commitment to engaging more thoroughly with Web3 technologies, particularly in the realms of cross-chain interoperability and the practical use of tokenized assets. Chainlink will provide its technical knowledge and industry experience to aid in the research. Following their conclusions, the two organizations intend to recommend regulatory frameworks to facilitate blockchain integration.

ADGM, situated in Abu Dhabi and recognized as an international financial hub, established a regulatory framework for virtual assets in 2018 and currently hosts over 2,000 enterprises. Chainlink, on the other hand, operates as a decentralized oracle network that links smart contracts to external data sources.

As part of the collaboration, Chainlink has pledged to deliver its sophisticated services to boost the functionality of tokenized assets, while adhering to compliance requirements, as stated by ADGM in its announcement.

Angie Walker, the Global Head of Banking and Capital Markets at Chainlink Labs, has indicated that this partnership aims to foster and sustain initiatives related to tokenization within ADGM.

“Together, we will enhance the blockchain landscape in the UAE, promoting innovation and uptake,” Walker remarked.

This move comes amid a rising interest in asset tokenization within the UAE. Tokenized assets—real estate transformed into blockchain-based digital tokens—facilitate fractional ownership, improve liquidity, and make trading more straightforward. Market research firm Mordor Intelligence projects that the global market for asset tokenization may reach $2.08 trillion (approximately ₹1,78,34,991 crore) by 2025 and surpass $13.5 trillion (nearly ₹11,57,50,069 crore) by 2030.

Only recently, the Dubai Land Department (DLD) announced its plans to investigate real estate tokenization to streamline property transactions.

Under the terms of the MoU, ADGM and Chainlink will collaborate on regulatory dialogues and educational programs. In the upcoming months, they will conduct a series of events and workshops to educate businesses and individual investors about the changing tokenization environment.

“By partnering with Chainlink, we seek to establish a global standard that champions transparency, security, and reliability within the blockchain ecosystem,” noted Hamad Sayah Al Mazrouei, CEO of the ADGM Registration Authority. The theme of Artificial Intelligence (AI) will also be included in discussions between the two organizations.

The UAE government is working on plans to revitalize various public and private services through blockchain technologies. It has also initiated discussions in favor of Web3 with the United States.