National Bank of Bahrain Unveils First Bitcoin-Linked Investment Product in GCC Region

National Bank of Bahrain Unveils First Bitcoin-Linked Investment Product in GCC Region

The National Bank of Bahrain (NBB) has introduced the first Bitcoin-linked Structured Investment in the Gulf Cooperation Council (GCC) region. Developed in collaboration with ARP Digital, a prominent digital asset firm, the product was announced during the Fintech Forward 2024 event.

This investment product offers accredited investors an opportunity to benefit from Bitcoin’s growth potential, with gains capped at a predetermined level, while providing 100% capital protection against downward market movements. NBB’s CEO, Hisham AlKurdi, emphasized that this launch reflects the bank’s commitment to financial innovation and delivering secure, diverse wealth management solutions.

The Bitcoin-linked product aims to offer a hedge against the volatility of cryptocurrencies while ensuring a secure investment framework. It will be available in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

ARP Digital co-founder and co-CEO Abdulla Kanoo remarked that this structured investment presents a calculated and secure approach to gaining exposure to Bitcoin's long-term growth. ARP Digital, which offers services such as crypto trading, custody, and portfolio management, received its operating license from NBB in April.

Bahrain is emerging as a key player in the Middle East's crypto space, following regulatory support for firms like Crypto.com, which recently received a payment service provider license. The region accounted for 7.5% of global crypto transaction volume between July 2023 and June 2024, according to a Chainalysis report.