by Cindy Huynh
The Abu Dhabi Securities Exchange (ADX) recently issued a thought paper detailing the infrastructure required for crypto assets, distributed ledger environments, and financial markets. According to a post published by the ADX on November 6, 2018, the paper serves as a reliable reference to help financial institutions transition from conventional assets to crypto assets.
ADX Issues Thought Paper on Crypto Assets
The ADX issued the thought paper on Crypto Assets in conjunction with the Central Securities Depositories under the patronage of the International Securities Service Association (ISSA). The Central Securities Depositories is responsible for assessing the crypto asset environment to see if there is a safe and efficient method for issuers and investors to participate in crypto assets.
According to the post, the ADX aims to identify and explore the operational and technical requirements necessary for financial institutions to issue crypto assets and transition smoothly into more encrypted assets, to progress forward into the future, as these assets are growing quickly.
“At ADX, we embrace new and innovative technology and are always looking to capitalize on advancement in FinTech; particularly in crypto-assets to optimize the benefits we offer to our investors and stakeholders,” said Rashed Al Blooshi, the chief executive officer of ADX.
Blooshi emphasized the importance of continuously upgrading financial market infrastructure and implementing standards of governance within the ADX’s systems. These actions are necessary to prevent market fragmentation. They also help boost investor confidence and improve the quality of the infrastructure. Blooshi also added that the ADX would also continue further developing and implementing blockchain-based projects.
The Middle East Embraces Blockchain Technology
Abu Dhabi is not the only city in the Middle East to openly embrace crypto assets and blockchain technology. According to the Global Islamic Economic Summit, hosted on October 30, 2018, other cities like Dubai are also eager to hop on the blockchain wagon.
At the Economic Summit Dilip Rao, the Global Head of Infrastructure and Innovation at Ripple mentioned that the growing startup would soon set up a Dubai-based office before the end of 2018. When asked about the Middle East region, Rao noted that the Middle Eastern Region is very progressive when it comes to adopting emerging technologies like blockchain.