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Abu Dhabi Securities Exchange Chief is Big on Blockchain

Samburaj Das
Last Updated March 4, 2021 4:55 PM
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The deployment of blockchain technology is very much on the agenda of the Abu Dhabi Securities Exchange, revealed chief executive Rasheed Al Blooshi.

The Abu Dhabi Securities Exchange (ADX) will look to deploy blockchain technology, the innovation powering digital currencies like bitcoin, on a regional scale in compliance to a remit in line with Abu Dhabi’s Economic Vision 2030  [PDF].

“[A]dopting blockchain technology in our projects comes in alignment with the digital transformation of Abu Dhabi’s government services as we constantly strive to introduce new ways that ease the process of doing business in the Emirate,” Al Blooshi stated .

The ADX has notably deployed blockchain technology already, in the form of an e-voting platform for shareholders of listed companies. Launched in October 2016, the platform enables shareholders to vote during annual general meetings (AGMs) of listed companies, facilitating an easy and efficient voting process. The blockchain platform also allows any shareholder to count the number of votes submitted, in a nod to transparency.

Each transaction on the platform is counted as a vote, with users registering votes using their smartphones. Further, stakeholders will also be able to access reports and statements relevant to the meetings. Altogether, the use of blockchain technology is to bring higher attendance and interaction during AGM meetings.

The initiative is said to be the first of its kind wherein a stock market enabled blockchain-based solutions for stakeholders in the MENA (Middle East and North Africa) region.

Talking up bitcoin’s underlying technology, Al Blooshi added:

Blockchain is the most innovative technology in digital transactions. It represents the second generation of the internet and has enabled ADX to join the elites of the top 10% of institutions globally who have taken steps in adopting this technology.

Other notable and more sweeping developments of blockchain solutions are seeing deployments in a number of major stock exchange operators around the world. The Australian Stock Exchange (ASX), one of the world’s most profitable stock exchanges is notably trialing blockchain technology for its clearing and settlement process.

In early 2016, IBM partnered Asia’s largest stock exchange in Tokyo to develop blockchain applications. Come January this year, Japan’s financial regulator approved the Japan Exchange Group (JPX) to use financial technologies like blockchain to power its core trading infrastructure. Last month, the JPX revealed plans to release its first blockchain proof-of-concept user app sometime this month.

Other blockchain-based efforts in stock markets are taking shape in Hong Kong, Malta, Thailand, England, South Korea and the United States.

Featured image from Shutterstock.