Abu Dhabi Securities Exchange (ADX) has entered into an agreement with Equichain, a London-based blockchain technology finance company, to progress on how to use blockchain technology to bring its efficiency to capital markets operations.
The british newspaper The National reported that the United Arab Emirates (UAE) is aiming to introduce blockchain technology into the workflow to eliminate the intermediaries that are currently part of the system.
As a partner of Equichain, ADX will work closely with the other members of the group to facilitate a closer dialogue and share experiences and best practices on institutional Blockchain technology, which can be utilised by the Exchange.
— ADX (@ADX_AE) May 29, 2018
Rashed Al Blooshi, Chief Executive ADX, Said:
“The open exchange with Equichain and members of the working group will allow us to identify and test new applications of blockchain technology, aiming to enhance the speed and security of capital market transactions to the benefit of our investors and stakeholders”
The stock exchange has previously implemented blockchain technology for electronic voting services at the company's Annual General Meetings. The system adopted was used to provide a simple and extremely secure voting solution.
Equichain has already formed a team for institutional investors and other market service providers, such as stock exchanges. Following the agreement between the two factions, ADX will join a similar collaborative effort with other leaders in the financial sector. The team will be then looking forward to exploit various application platforms with Equichain, and to begin planning how best to apply this technology in the capital markets.
“This partnership will further our efforts towards establishing a more streamlined capital markets environment for investors, providing greater efficiency, reduced risk, and lower cost,” commented Equichain’s CEO.
ADX's action will not only benefit the company, but also the region. It is expected that doors will be opened to other financial institutions to catch up on blockchain technology and thus provide more efficient services to all their customers.
The Middle East region is in favor of a solution that would place technology in an important place on its economy.
Countries such as Kuwait and Bahrain have been very open to new fintech companies. Additionally, they have also enacted new laws that will accelerate the spread of technology in the region.