ADX Partners with Equichain to Provide Better Services Using Blockchain Technology
Abu Dhabi Securities Exchange (ADX), has signed a pact with Equichain, a UK-based financial technology company, to see how best to use blockchain technology to bring efficiency to operations of the capital markets.
Slicing Intermediary Layers
As reported on The National, the aim of introducing blockchain technology to its workflow is to do away with intermediaries that are currently part of the system, bringing a change by expanding its scope.
“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,” said Chief Executive of ADX Rashed Al Blooshi.
The exchange has previously implemented blockchain for e-voting services for the company’s Annual General Meetings. The adopted system was used to provide a straightforward and extremely secure voting solution.
Middle East’s Pro Blockchain Approach
Equichain has already established a working group for institutional investors and other market service providers like stock exchanges. Following the agreement between the two parties, ADX is to join a similar collaborative effort with other leaders cut across the financial industry. The collective will then have the opportunity to explore various application platforms with Equichain alongside discussing how to apply this technology in capital markets.
The CEO of Equichain also had this to say: “This [partnership] will further our efforts towards establishing a more streamlined capital markets environment for investors, providing greater efficiency, reduced risk, and lower cost.” The governments, especially in the middle east, have been in support of creating a knowledge-based economy rather than being an economy which solely depends on its oil production.
Countries such as Kuwait and Bahrain have had their government in full support of fintech start-ups and also making new laws that will speed up widespread of the technology in these countries.
ADX’s decision will not only be beneficial to them but neighboring countries. It will also open the gateway for other financial institutions to get on the blockchain bandwagon to provide more efficient services to their customers.
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