Businesses in Abu Dhabi, the capital of the UAE (United Arab Emirates’), are increasingly welcoming blockchain technology as local regulators shift towards embracing comprehensive legislation concerning crypto assets.

Though ADGM, or Abu Dhabi Global Market, declared its intention to support crypto asset trading in 2018, the UAE capital has taken a careful approach to roll out permissive regulations.

Nevertheless, Abu Dhabi Islamic Bank, or ADIB, recently became the first Islamic bank to perform trade finance distribution transactions, and the ADGM is preparing to launch crypto asset trading in Q2 2020.

ADIB administers blockchain-enabled trade finance distribution

 ADIB claimed to be the first Islamic institution to execute trade finance distribution transactions using distributed ledger technology successfully or DLT, on April 15.

ADIB led various cross-border transactions with associate banks adopting TradeAssets, a blockchain-based digital trade finance marketplace. The milestone is the product of a year of partnership between ADIB and TradeAssets.

Haytham Elmaayergi, ADIB’s global head of transaction banking, stated in a statement: “ADIB is committed to expanding its digital footprint in trade financing and distribution, enhancing the efficiency and productivity of businesses across the region and globally.”

Abu Dhabi Global Market to launch crypto trading by July

ADGM, Abu Dhabi’s top international finance center, and free economic zone are presently slated to originate regulated digital asset trading before Q3 2020.

In 2019, the Financial Services Regulatory Authority published in-principle approvals to various companies planning to run crypto-asset exchanges. Leon Smith, the chief executive of DEX said in a statement— a crypto exchange that obtained in-principle permission from Abu Dhabi’s financial regulator, explained the ADGM’s choice to launch regulated crypto trading as “a ground-breaking step for the region.”

“Everyone involved at ADGM is to be praised for their endeavors in making this happen,” he stated, adding: “This is very much about transforming ADGM into a global financial hub and part of the wider Abu Dhabi narrative.”