The National Bank of Bahrain (NBB) has made history by launching the first Bitcoin-linked Structured Investment in the Gulf Cooperation Council (GCC) region. This groundbreaking product, developed in collaboration with digital asset firm ARP Digital, marks a significant step in the region’s evolving crypto investment landscape.
Announced on Monday during the Fintech Forward 2024 event, the new investment product offers accredited investors exposure to Bitcoin’s growth potential. It provides returns from Bitcoin’s upward performance, capped at a predefined threshold, while ensuring 100% capital protection during downward trends.
Hisham AlKurdi, NBB Group Chief Executive, emphasized that the product aligns with the bank’s commitment to offering innovative and secure investment options for its clients. “This product underscores our focus on offering our wealth management clients innovative and secure avenues to diversify their portfolios in an evolving investment landscape,” he stated. He also highlighted NBB’s leadership in financial innovation across the GCC.
By providing exposure to Bitcoin’s long-term growth, the product also serves as a hedge against the notorious volatility of the crypto market, allowing investors to take a calculated approach to digital assets.
Abdulla Kanoo, co-founder and co-CEO of ARP Digital, praised the partnership, stating, “This structured investment opens new doors for investors seeking a calculated approach to digital assets while ensuring high security.”
The Bitcoin-linked investment fund will be available in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, exclusively for accredited investors.
In April, ARP Digital, co-founded by a former Goldman Sachs partner, secured an operational license from NBB, offering services like crypto trading, custody, and portfolio management. This partnership further strengthens Bahrain’s position as a growing hub for cryptocurrency activities in the Middle East and North Africa (MENA) region.
Recently, Crypto.com also received a payment service provider license from the Bahrain Central Bank, which will allow the platform to expand its regional e-money and fiat-based payment services. According to a report from Chainalysis, the MENA region accounted for 7.5% of global crypto transaction volume between July 2023 and June 2024, highlighting the region’s growing importance in the global crypto market.
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