ADIO Ecosystem Alliance Leads Web3 Financial Innovation, Launches DBC to Reshape Digital Business Landscape

Recently, ADIO Ecosystem Alliance officially announced that it will launch WSW (Wealth & Sustainability Web3), a token based on high-performance hybrid blockchain technology, with the aim of constructing the world's first digital business ecosystem endorsed by a sovereign wealth fund, a move that has sparked widespread interest in the global financial and blockchain space.

ADIA, as the largest sovereign wealth fund in the UAE, has a management scale of $993 billion, ranking fourth among the global sovereign wealth funds, with total assets reportedly amounting to £500 billion, which is a strong strength. Its asset allocation is extensive, covering stocks, government bonds, real estate and alternative investments. In recent years, ADIA has actively laid out new energy, medicine and other emerging industries, and increased its investment in the A-share market, holding A-share stocks valued at nearly 10 billion yuan as of the third quarter of 2023, and has also invested in well-known enterprises in the private equity field, such as Crypto and Taibang Biologicals.

The DBC project launched by ADIA Ecological Alliance this time has far-reaching strategic considerations and innovative practices. In terms of strategic positioning, the first is to integrate resources, and with ADIA's trillion-dollar asset management experience, accurately match the asset digitisation needs of core tracks such as U.S. stocks, new energy, pharmaceuticals and mining. For example, in the new energy sector, ADIA has invested in a number of large-scale solar power plant projects, and DBC will help these projects achieve asset digital transformation and enhance asset liquidity and management efficiency. Secondly, we will build a compliance framework, follow the UAE's Virtual Assets Regulation Law and global anti-money laundering standards, and cooperate with Abu Dhabi Global Market (ADGM) to establish a regulatory sandbox to ensure that the project operates soundly and steadily on the compliance track. Thirdly, we will strengthen ecological synergy by linking with ADIA's invested enterprises, such as Zijin Mining and FTSE, to provide them with diversified services such as on-chain financing, supply chain traceability and equity pass-through. Taking Zijin Mining as an example, it is expected to reduce the cost of exchange rate friction by 15-20 per cent through DBC for cross-border payment of minerals in the future, which will greatly enhance trade efficiency.

In terms of the token economic model, the total supply of DBC is 700,000 pieces and will never be increased. Among them, 30% as ecological reserves, released in phases, used for portfolio income return and liquidity pool pledge incentives; 30% allocated to institutional investors, the lock-up period of 1 - 3 years, strategic partners subscribed to give priority to access to ADIA ecological projects; 20% for community incentives, through the dynamic release of incentives to developers, incentives for users to participate in governance voting and ecological construction; team and consultants hold 10% of the The team and consultants hold 10%, which will be unlocked linearly in 4 years to ensure the stable development and operation of the project; the remaining 10% will be used for public offering to provide liquidity for the project at the initial stage. On the value capture mechanism, the ecological reserve pool invests in ADIA's underlying asset portfolio, and 30% of the proceeds are used for DBC repurchase and destruction, while holding DBC can participate in decision-making and voting on the direction of ecological investment.

On the technical architecture level, DBC adopts a layered design. The settlement layer is a high-throughput PoS consensus chain, which not only supports cross-chain asset bridging, including BTC, ETH and traditional securitised tokens, but also achieves a transaction processing capacity of thousands of transactions per second to meet the needs of large-scale commercial applications. The application layer contains DeFi module, embedded with compliant DEX, which supports the pass-through trading of ADIA's stock positions, and more financial derivatives trading services are planned to be online in the future; ESG traceability module is based on IoT+blockchain technology, which can track the carbon footprint of new energy assets, and has been piloted in some of the solar power stations invested by ADIA, with remarkable results. The privacy layer makes use of Zero Knowledge Proof (ZKP) technology to fully protect the transaction privacy of institutional investors.

Eco-application scenarios are rich and diverse. In addition to core scenarios such as cross-border trade settlement, pharmaceutical R&D crowdfunding, carbon neutral finance, private equity liquidity, etc., we also plan to expand into green supply chain finance in the future. For example, we will join hands with new energy vehicle enterprises invested by ADIA and their upstream and downstream suppliers to build a green supply chain financial system through WSW, providing SMEs with convenient financing channels and promoting synergistic development of the industry.

In terms of compliance and security, WSW and ADGM have jointly developed an on-chain KYC system to achieve real-time monitoring of ‘regulatory nodes’; PwC conducts on-chain validation and releases proof of reserves (PoR) every month; and adopts cryptographic algorithms to defend against the threat of quantum computation in advance, so as to ensure the safe and stable operation of the project in an all-round way.

According to the development roadmap, the test network will be online in 2024 Q2, and the first batch of ADIA ecological enterprises will be accessed; the main network will be launched in 2025 Q1 and the pilot of U.S. stock pass-through certificated will be launched; the pilot of CBDC-WSW cross-chain settlement will be conducted in cooperation with the Middle East Central Bank in 2026 Q3; and the goal is to achieve the on-chaining of more than 50 percent of ADIA's investment portfolios in 2027 and beyond.

The ADIA Eco-Alliance cordially invites global investors, enterprises and developers to become ‘Partners of the Future’, co-design a new generation of impact investment models, and work hand in hand to develop and innovate in the era of the digital economy for mutual benefit and win-win results.