Zokyo has been instrumental in supporting the Solana Foundation in its successful tokenized setup under the 2023 Distributed Ledger Technology (DLT) Foundations Regulations of the Abu Dhabi Global Market (ADGM). This milestone represents a major step forward in establishing compliant blockchain infrastructure within one of the world's most forward-thinking regulatory environments.
What Is the ADGM DLT Foundations Framework?
The Abu Dhabi Global Market introduced its DLT Foundations Regulations in 2023, creating what is widely recognized as the world's first regulatory framework designed specifically for blockchain foundations, Web3 entities, and decentralized autonomous organizations (DAOs).
The framework is grounded in English Common Law and offers several key features:
- Token governance: Permits decentralized governance through token voting and smart contracts, without the need for traditional bylaws
- Virtual asset integration: Supports utility token issuance and facilitates diverse token governance strategies with clear guidelines on token rights
- Ownerless legal structures: Allows entities to function globally without physical presence mandates while maintaining the ability to engage in legal proceedings
- Asset protection: Shields foundation assets from foreign claims
By providing clear regulatory pathways for tokenized foundations, ADGM has positioned itself as a leading hub for technology-driven financial services in the Middle East and globally.
The Solana Foundation and ADGM Partnership
In February 2024, ADGM signed a Memorandum of Understanding (MOU) with the Solana Foundation - a non-profit organization dedicated to the decentralization, adoption, and security of the Solana network. The partnership was designed to advance distributed ledger technology solutions and promote blockchain innovation within Abu Dhabi's financial ecosystem.
Hamad Al Mazrouei, CEO of the ADGM Registration Authority, described the alliance as "a key milestone in cementing ADGM's leadership in the blockchain sector." Lily Liu, President of the Solana Foundation, noted that "the UAE has emerged as a global hub for innovation and adoption of blockchain technology."
The collaboration set the stage for Solana's formal registration as a DLT Foundation under ADGM's regulatory framework - a process in which Zokyo played a central role.
Zokyo's Role in the Compliance Process
Recognized by the ADGM Registration Authority for its high-caliber compliance audits, Zokyo has firmly established itself as a premier service provider within Abu Dhabi's regulatory framework for distributed ledger technologies. Zokyo is the first auditor to set up an auditing framework based on the standards set by ADGM.
The registration process included a thorough compliance audit of the prospective ADGM foundation's documentation, ensuring full alignment with the ADGM DLT Foundations 2023 regulations. Zokyo's approach followed a structured methodology:
Initial Assessment
The engagement began with a comprehensive review of the Solana Foundation's White Paper and Token Economy documentation against regulatory standards and industry benchmarks. This covered the market overview, token utilities, ecosystem participants, and incentive policies.
Collaborative Workshops
Following the initial assessment, Zokyo conducted collaborative workshops with the foundation's team to address improvement areas and ensure all documentation met the required regulatory standards. This iterative process allowed both teams to work through compliance gaps methodically.
Comprehensive Final Report
The process culminated in a comprehensive final report detailing full compliance status, remediation steps taken, and recommendations for ongoing regulatory alignment. This report served as a key submission artifact in the ADGM registration process.
Why This Matters for Web3
The successful registration of the Solana Foundation under ADGM's framework demonstrates that leading blockchain ecosystems can operate within clear, well-defined regulatory boundaries. This matters for several reasons:
- Regulatory legitimacy: A registered DLT Foundation in ADGM carries significant credibility with institutional partners, investors, and regulators worldwide
- Operational clarity: The ADGM framework provides clear guidelines on permitted activities, token rights, and governance - reducing legal ambiguity for the foundation and its participants
- Global precedent: As one of the first major blockchain ecosystems to register under this framework, Solana sets a benchmark for other protocols looking to achieve similar regulatory standing
- Middle East expansion: The registration supports the broader push to attract Web3 talent and innovation to Abu Dhabi and the wider Middle East region
Zokyo's Compliance Expertise
This engagement with the Solana Foundation follows Zokyo's earlier success guiding IOTA's registration as the first foundation under ADGM's DLT Foundations 2023 Regulations. Together, these milestones underscore Zokyo's position as the leading compliance auditor operating within the ADGM's DLT regulatory framework.
Zokyo's compliance practice extends beyond documentation review. The firm specializes in offensive cybersecurity, token economics, cryptography, and reverse engineering, advising across ecosystems including EVM, Solana, Ton, Move, and more. By working closely with the ADGM Registrar, Zokyo continues to drive the adoption of tokenized foundations and fully compliant DLT solutions.
Looking Ahead
As regulatory frameworks for blockchain and Web3 continue to mature worldwide, the collaboration between Zokyo and the Solana Foundation offers a clear blueprint for how compliance and innovation can work together. The ADGM's framework represents a new standard in how jurisdictions can support blockchain foundations while maintaining robust oversight.
For projects looking to navigate regulatory compliance for their Web3 initiatives or establish a tokenized ADGM foundation, Zokyo's track record with both Solana and IOTA demonstrates the expertise required to move from concept to compliant registration.