Abu Dhabi Global Market has joined the Market Infrastructure Group, a blockchain technology consortium founded by a London-based fintech start-up.

An Abu Dhabi international financial centre and regulator has partnered with an industry consortium founded by a London-based financial technology company to explore blockchain-powered solutions that seek to drive market efficiency and enhance risk management. 

Abu Dhabi Global Market announced its membership of the Market Infrastructure Group, which was established by blockchain technology start-up company EquiChain, earlier this week.

The consortium, comprising global financial institutions and industry figureheads, will "jointly discuss and further the development and application of distributed ledger technology (blockchain) and related solutions," ADGM said in a statement. 

Blockchain technology, a virtual distributed ledger of transactions shared peer-to-peer, can record ownership across a public network of computers rendered tamper-proof by advanced cryptography. It is already known as the platform for the controversial digital currency bitcoin. The nascent technology is causing a stir within the financial services sector as its supporters believe it could reduce hidden expenses in the financial system by ousting inefficiencies across areas such as payments, syndicated loans and equity clearing. 

EquiChain was founded in 2015 by its chief executive Nicholas Bone, a former banker who has served at the Bank of England, Deutsche Bank, BNY Mellon and most recently Standard Chartered. It has reportedly developed a working prototype for a blockchain-powered solution that promises to improve market efficiency and global investor access in emerging and frontier markets. 

The firm has established an “experienced and well-qualified” board with the appointments of Peter Sands, former group CEO of Standard Chartered, and chief technology officer Hugh Madden, co-founder of blockchain solutions provider ANX International, ADGM said. 

As a partner of the consortium, ADGM's fintech team will work with the group's members to facilitate closer dialogues, share expertise and experience, and develop pilots based on blockchain technology that can be deployed to the market, ADGM said. 

“This partnership dovetails well with ADGM’s ongoing efforts to build deep regulatory capabilities in blockchain technology, and the development of risk-appropriate and effective regulations for such innovation,” said Richard Teng, CEO of ADGM's regulatory department.

He added: “We hope to contribute meaningfully to bolster greater market efficiency, as well as enhance investor access to emerging and frontier markets while upholding high regulatory practice.”

Earlier this week, ADGM entered into an agreement with Bahrain's central bank in a bid to strengthen regulatory cooperation between the two parties.