The National Bank of Bahrain (NBB) has introduced the first Bitcoin-linked structured investment product in the Gulf Cooperation Council (GCC) region, partnering with digital asset firm ARP Digital. The fund, announced on Monday, aims to harness Bitcoin’s growth potential while providing significant capital protection during downturns.
The announcement was made during the Fintech Forward 2024 event held last week. The investment product is exclusively available to accredited investors, reflecting NBB’s commitment to offering innovative and secure options for wealth management clients. Hisham AlKurdi, NBB Group Chief Executive, emphasized the bank’s leadership in financial innovation within the region, stating, “This product underscores our focus on providing avenues to diversify portfolios in an evolving investment landscape.”
The fund not only offers exposure to Bitcoin’s long-term growth but also serves as a robust hedge against the volatility often associated with cryptocurrencies. Abdulla Kanoo, co-founder and co-CEO of ARP Digital, highlighted that the product delivers Bitcoin exposure within a highly secure framework, allowing investors to take a calculated approach to digital assets.
The Bitcoin-linked structured investment will be available in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
In April, ARP Digital, co-founded by a former Goldman Sachs partner, received an operational license from NBB to provide services such as crypto trading, custody, and portfolio management.
This development follows the Bahrain Central Bank’s recent grant of a payment service provider license to Crypto.com, enabling the company to expand its e-money and fiat-based payment services in the region.
Bahrain has quickly established itself as a crypto hub in the Middle East and North Africa (MENA), thanks to its well-regulated ecosystem for both domestic and international crypto firms. A recent Chainalysis report revealed that MENA accounted for 7.5% of global crypto transaction volume between July 2023 and June 2024.
