The Abu Dhabi Global Market (ADGM) and Hashd Open Research, a venture capital firm specializing in Web3 technologies, have jointly released a report that explores the transformation of financial services with the rise of Web3 technology and artificial intelligence. The report highlights new features emerging in the financial world due to these technologies, emphasizing the necessity of understanding their impact on current standards and the services offered in the financial sector.
Roundtable Discussion with Web3 Leaders
The Web3 leaders’ roundtable, which gathered around 40 prominent entrepreneurs and thought leaders in the financial field, took place during Abu Dhabi Finance Week 2025. Participants included representatives from major institutions such as the Abu Dhabi Investment Authority, BlackRock, and Franklin Templeton, as well as governmental organizations like the European Commission.
Artificial Intelligence and Blockchain
The discussions shed light on the convergence of these two technologies, pointing to the impact of artificial intelligence systems on financial activities and the need for secure and transparent infrastructures tailored to meet the demands of these transformations. The report criticizes reliance on traditional systems, which may not be adequate to address these rapid developments.
Challenges and Potential Solutions
Regulatory constraints that may hinder the widespread adoption of digital assets were highlighted. These constraints include asset calculation requirements under Basel capital rules, as well as issues related to compliance with anti-money laundering and know-your-customer laws. The report discusses ways to accelerate the integration of stablecoins and instant settlement into blockchain-based financial infrastructures as practical steps for improvement.
Balancing Progress and Regulation
The report argues that excessive regulatory strictness in the early stages may stifle innovation, underscoring the need for appropriate regulatory frameworks that provide clarity and trust. Rashid Al Blooshi, CEO of the ADGM, emphasizes that governance has become a fundamental pillar for ensuring sustainability in this evolving sector.
Simon Seojun Kim, CEO of Hashd, noted the importance of this dialogue in shaping financial policy trends. These discussions have become a platform for exploring how to redesign capital market structures to align with future needs.
The report serves as a valuable reference for investors, policymakers, and the broader public in understanding how the financial system is adapting to the profound impacts of Web3 technology and artificial intelligence.