Abu Dhabi Global Market (ADGM) has signed a memorandum of understanding with the Solana Foundation to advance the development of distributed ledger technology (DLT). The partners did not announce any specific measures but will explore opportunities for development within ADGM’s DLT Foundations Regulations.
ADGM and Solana will look to expand the international financial center’s existing projects, according to a statement released by ADGM. ADGM Registration Authority CEO Hamad Al Mazrouei said:
“We are excited to partner with Solana to pioneer the future of technology, and further enhance the level of knowledge in the space of blockchain by emphasising the value of regulation and compliance in ensuring robust and sustainable development.”
The DLT Foundations Regulations were introduced in November. ADGM claimed at the time that they represented the first “purpose-built” regulatory framework in the world for blockchain foundations, Web3 entities and decentralized autonomous organizations.
As an international financial center, ADGM observes English law and has its own court system. It was founded in 2015 and introduced cryptocurrency regulations in 2018. It has been expanding rapidly. Early last year, it saw the creation of the $1 billion Venom Ventures Fund by the local Venom Foundation and ADGM investment management firm Iceberg Capital.
The Hub71+ Digital Assets initiative launched in February 2022 with $2 billion in backing. ADGM’s Hut 71 planned to provide financing to businesses in Abu Dhabi, the Middle East and beyond. The launch of $250 million crypto platform Bridgetower Middle East took place on Feb. 8.
In addition, ADGM has welcomed Binance, crypto firms Rain and M2, Nomura Bank subsidiary Laser Digital, stablecoin issuer and digital asset service provider Paxos and blockchain developer Iota with various forms of licensing.
Solana has been on the upswing as well. Solana Foundation CEO Lily Liu told Cointelegraph:
“We seek attractive environments for innovators to build unique applications in fintech, gaming, DePIN, and the creator economy. […] We expect our partnership with ADGM will attract talent to Abu Dhabi, the UAE, and to the Middle East region more broadly.”
I spent the day with the @ADGlobalMarket leadership, and have come away with great optimism about their progressive, consultative approach to regulation.
I am excited to share that we are collaborating with Abu Dhabi Global Markets to support ecosystem teams in accessing the… pic.twitter.com/MZHEKOKtEm
— Lily Liu (@calilyliu) February 7, 2024
Solana has seen a surge in public interest in recent months and rapid growth in the number of its developers. Transfer volume on the Solana blockchain exceeded $300 billion in January, up from $297 billion in December. Less happily, it experienced an outage on Feb. 6.