The National Bank of Bahrain (NBB) has launched the first Bitcoin-linked Structured Investment in the Gulf Cooperation Council (GCC) region. The crypto investment product was introduced in partnership with the digital asset firm ARP Digital.
The investment fund, Announced Monday, offers growth potential from Bitcoin’s upward performance, capped at a predefined threshold. It also provides 100% capital protection during a downward trend.
The announcement came during the Fintech Forward 2024 event held last week. The announcement read that the investment fund will be available “exclusively for accredited investors.”
“This product underscores our focus on offering our wealth management clients innovative and secure avenues to diversify their portfolios in an evolving investment landscape,” said Hisham AlKurdi, NBB Group Chief Executive. It is a testament to NBB’s continued leadership in financial innovation within the region.”
Additionally, by providing exposure to Bitcoin’s long-term growth, the fund offers a powerful hedge against the volatility associated with cryptocurrencies.
Abdulla Kanoo, co-founder and co-CEO at ARP Digital said that the product offers BTC exposure “within a highly secure framework.”
“This structured investment opens new doors for investors seeking a calculated approach to digital assets.”
Besides, 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 operation license from the NBB. ARP Digital provides customers with services such as crypto trading, custody, and portfolio management.
The news comes weeks after the Bahrain Central Bank granted Cyrpto.com a payment service provider license. The license would allow Crypto.com to expand its offerings of e-money and fiat-based payment services regionally.
Bahrain has quickly become a crypto hub in the Middle East and North Africa (MENA) region with its well-regulated ecosystem for both domestic and foreign crypto firms. Per a recent Chainalysis report, MENA accounted for 7.5% of global crypto transaction volume between July 2023 and June 2024.
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