Chainlink Labs Joins Hands With Zand Bank to Boost Digital Asset Integration in UAE

Chainlink Labs and Zand Bank have formed a strategic collaboration to advance digital asset innovation in the United Arab Emirates (UAE). Zand Bank, an AI-powered fintech and financial services group, will use Chainlink’s suite of blockchain infrastructure tools to evaluate how tokenized assets and decentralized applications can connect with the UAE’s financial system.

Chainlink Labs, a primary contributor to the Chainlink oracle network, is widely recognized for providing secure, reliable data and interoperability solutions that bridge blockchain networks with traditional systems. Its infrastructure has already enabled tens of trillions of dollars in on-chain transaction value across global markets.

Why This Collaboration Matters

For the UAE, digital assets are becoming an important part of national financial innovation goals. Regulatory clarity and government-led digital transformation initiatives have positioned the country as a hub for fintech development. By partnering with Chainlink Labs, Zand Bank gains access to tools that can support:

• Tokenized asset issuance and management
• Automated compliance frameworks
• Cross-chain interoperability
• Verified data feeds for financial products

The collaboration also places the UAE as a competitive player in institutional blockchain adoption, following similar moves by banks and financial institutions across Europe, North America, and Asia.

Zand Bank’s Role in Digital Asset Development

Zand Bank operates as a fintech-driven financial institution in the UAE, with a focus on AI-powered solutions and digital-first services. Its interest in blockchain and tokenized finance reflects the region’s growing emphasis on diversification and financial modernization.

Through its collaboration with Chainlink, Zand Bank will explore how tokenized deposits, stablecoins, and other blockchain-native financial instruments can be securely integrated into regulated banking systems. The bank will also examine how digital asset infrastructure can enhance capital efficiency, compliance automation, and customer access to blockchain-based services.

Chainlink’s Institutional-Grade Infrastructure

Chainlink is widely considered the industry-standard oracle platform. Its infrastructure connects blockchains with real-world data, ensuring secure, verifiable transactions for decentralized finance (DeFi), capital markets, insurance, and payments.

Chainlink’s services are used by global financial institutions and market infrastructures, including Swift, Euroclear, Mastercard, Fidelity International, UBS, and ANZ.

The reliability of Chainlink comes from its focus on:

• Data Integrity: Delivering tamper-proof, verifiable data to blockchain applications.
• Interoperability: Allowing assets and messages to move across multiple blockchains.
• Compliance: Supporting tools that integrate with regulatory frameworks.
• Scalability: Enabling high-throughput financial applications.

Chainlink Tools Zand Bank Will Leverage

As part of the partnership, Zand Bank will utilize a suite of Chainlink services designed for enterprise and financial use cases. These include:

• Automated Compliance Engine (ACE): A framework that automates compliance checks for blockchain transactions, ensuring adherence to financial regulations.
• Automation: Tools for reliable and verifiable on-chain process execution, reducing manual intervention.
• Cross-Chain Interoperability Protocol (CCIP): Infrastructure that enables secure transfer of tokens and data between blockchains, critical for cross-border and multi-asset transactions.
• Data Streams: Real-time, low-latency data delivery for financial markets.
• Price Feeds: Tamper-proof price data that supports secure DeFi applications and tokenized assets.
• Proof of Reserve (PoR): Verifies that collateral backing assets like stablecoins or tokenized commodities exists and is properly maintained.
• Verifiable Random Function (VRF): Provides secure randomization for applications that require fairness, such as digital asset distribution.

A key part of this collaboration is Chainlink’s emphasis on compliance and data security. Zand Bank, as a regulated financial institution, must ensure that blockchain-based solutions align with anti-money laundering (AML), counter-terrorist financing (CTF), and know-your-customer (KYC) regulations.

Chainlink’s Automated Compliance Engine (ACE) and Proof of Reserve tools provide verifiable, automated checks that reduce compliance risks while supporting operational transparency. This approach allows banks to integrate digital assets without compromising regulatory obligations.

Regional Context: Blockchain Adoption in the Middle East

The collaboration between Chainlink Labs and Zand Bank reflects a broader trend of blockchain adoption across the Middle East. Financial institutions in the Gulf region are increasingly testing and deploying blockchain for tokenization, payments, and compliance.

Recently, Saudi Awwal Bank (SAB), one of Saudi Arabia’s largest banks with over $100 billion in assets, announced its own partnership with Chainlink. SAB uses Chainlink’s CCIP and Chainlink Runtime Environment (CRE) to:

• Enable tokenized deposits and bonds
• Automate cross-border settlements
• Integrate compliance and identity systems on blockchain
• Connect with global tokenized capital markets

This regional momentum highlights the Middle East’s role as a growing center for blockchain-based financial innovation.

Comparing Institutional Use Cases

Chainlink’s growing list of banking partners—including Swift, SAB, and now Zand Bank—illustrates the different ways financial institutions are approaching blockchain adoption:

• Settlement Networks: Automating and verifying cross-border payments.
• Tokenized Assets: Issuing and managing digital bonds, deposits, or real-world assets.
• Compliance Automation: Using blockchain-native frameworks to meet regulatory standards.
• Interoperability: Building infrastructure that connects multiple blockchains and legacy financial systems.

For Zand Bank, the immediate focus is on using Chainlink infrastructure to test secure, compliant digital asset solutions in the UAE financial system.

Conclusion

The collaboration between Chainlink Labs and Zand Bank marks a step forward in digital asset adoption in the UAE. By leveraging Chainlink’s suite of oracle services—ranging from cross-chain interoperability to automated compliance—Zand Bank can explore tokenized assets and blockchain-based financial applications that align with regulatory standards.

For Chainlink, the partnership adds another institutional partner to its global network, reinforcing its role as a key infrastructure provider for secure, compliant digital asset innovation. Together, the two organizations are strengthening the foundations of blockchain adoption in the Middle East, with a clear focus on regulatory compliance, security, and interoperability.

Resources:

1. Chainlink X platform: https://x.com/chainlink

2. About Chainlink Runtime Environment (CRE): https://blog.chain.link/introducing-chainlink-runtime-environment/?utm_source=chatgpt.com

3. Chainlink blog: https://blog.chain.link/