Fintech Digital Sandbox Proposed By Abu Dhabi Global MarketSeptember 23, 2018
Fintech Digital Sandbox from the Abu Dhabi Global Market (ADGM) can be used by regulators, banks, financial technology firms, and blockchain firms to test products and solutions in a regulated, yet live environment.
Mr. Richard Teng, Chief Executive Officer of the Financial Services Regulatory Authority of ADGM, stated, “We have to date the second most active Fintech sandbox globally and most successful regulatory sandbox in the region and will continue to innovate to better serve the needs of the financial services industry and our economy.”
The regulatory standards that are developed by the Financial Services Regulatory Authority (FSRA) of ADGM will be integrated into the making of the sandbox. Blockchain solutions can be tested digitally on a platform in order to customize the codes to help meet the business needs of the various organizations.
For FinTech companies, the sandbox will be particularly useful because it will help these companies to provide their innovative solutions to international market players. Thus the company will be able to tap cross-border markets. Eventually improving on the opportunities to grow and scale their business across the globe and vice versa.
Fintech Digital Sandbox from the Abu Dhabi Global Market (ADGM) is a milestone for Xin in as it is likely to improve on the scalability of TradeFinex across the globe.
“XinFin with its smart contracts powered peer-to-peer TradeFinex platform will integrate ADGM financial solutions under sandbox environment. Using the live Sandbox environment, TradeFinex will be tested for the benefit of the SME sector embracing financial solutions like financing, payments and insurance solutions.”
TradeFinex being a dApp operating on XinFin Hybrid Blockchain that concentrates mainly in trade and finance sectors.
The major objective of the digital sandbox is to enable financial institutions to improve on their digital capabilities at a deeper level to the very intricate details eventually improving on their potential to tap market opportunities. This will in turn help promote financial inclusion for the underserved population living in the Middle East and North African (MENA) region.
Richard Teng, CEO of FSRA stated, “Our partnership with AFIN will enable ADGM to drive and further accelerate the financial inclusion agenda, and expand access to financial services in Abu Dhabi, regionally and globally. ADGM will continue to actively engage the industry, keep abreast of regulatory developments, innovate, and introduce appropriate initiatives to enhance the FinTech ecosystem in Abu Dhabi and for the region.”
The sandbox will be cost-effectively enabling APIs, wherein synthetic data can be stored in a cost-effective manner in the cloud. Cloud adoption by the Fintech industries will be done in compliance with the IT security requirements thereby making interoperability secure. Eventually, financial inclusion will be established with due convergence and higher standards.
ADGM will be partnering up with ASEAN Financial Innovation Network (AFIN) in order to leverage API Exchange (APIX) at a global level. The platform will be thus able to bring together FinTech firms and banks located between the MENA region and Asia-Pacific region at a common online digital platform that has been by open source APIs.