As part of its collaboration with Bahrain Fintech Bay, Ripple is set to introduce its custody solution alongside the RLUSD stablecoin to financial institutions in Bahrain.
Ripple’s Initiative in Bahrain
Ripple, a pivotal blockchain firm renowned for its cryptocurrency XRP, is venturing into Bahrain in partnership with a prominent local fintech hub. The official announcement came on Thursday regarding a strategic collaboration with Bahrain Fintech Bay (BFB), which has been instrumental in fostering fintech initiatives in conjunction with governmental bodies, such as the Central Bank of Bahrain (CBB).
Through this partnership, Ripple and BFB aim to cultivate Bahrain’s digital asset ecosystem. This includes executing pilot projects focused on fintech innovations encompassing aspects like cross-border payments and stablecoins, enhancing the local financial landscape.
Collaboration with the Government
Bahrain Fintech Bay was inaugurated in 2018 to serve as a fintech nucleus in Manama, under a collaborative framework involving the Bahrain Economic Development Board and the FinTech Consortium to promote fintech and innovation.
The bond between BFB and Bahrain’s central bank has been strong, with several collaborations noted prior to BFB’s formal establishment in late 2017. The CBB has acknowledged BFB’s contributions in various public statements, recognizing it as a critical partner in the fintech sector.
Regulatory Developments
In June, BFB partook in the Bahraini-Emirati Business Forum, featuring Tariq Mattar, who articulated insights on Bahrain’s fintech progress. Additionally, BFB’s partnership with Ripple aligns with recent advancements, where the Central Bank of Bahrain has facilitated the issuance of stablecoins pegged to various fiat currencies, laying the groundwork for a comprehensive framework for stablecoin regulation introduced earlier this year.
“Bahrain has long been recognized as a financial services hub, and today this legacy is being further enhanced in the digital assets and blockchain space,” said BFB’s COO, Suzy Al Zeerah.
This strategic alignment signifies Ripple’s growing presence within global markets, supported by over 60 regulatory approvals worldwide.
