The National Bank of Bahrain Launches First Bitcoin-linked Structured investment in GCC
The National Bank of Bahrain (NBB) has recently introduced the first Bitcoin-linked Structured investment in the Gulf Cooperation Council (GCC) region. This innovative crypto investment product has been developed in collaboration with the Digital asset firm ARP Digital to offer investors a unique opportunity in the growing Digital asset space.
Overview of the investment
- The investment fund provides Growth potential based on Bitcoin's performance, with a cap at a predefined threshold.
- It offers 100% capital protection during downward trends, ensuring the Security of investors' funds.
- The fund is exclusively available for accredited investors, reflecting NBB's commitment to catering to high-net-worth individuals.
- It serves as a strategic diversification tool for Wealth management clients seeking innovative investment Solutions.
The announcement of this groundbreaking investment product was made during the Fintech Forward 2024 event, emphasizing NBB's leadership in financial Innovation within the region. Hisham AlKurdi, NBB Group Chief Executive, highlighted the importance of offering secure avenues for portfolio diversification amidst evolving Market landscapes.
Benefits of the investment
- Provides exposure to Bitcoin's long-term Growth potential.
- Acts as a hedge against the volatility associated with traditional cryptocurrencies.
- Offers BTC exposure within a highly secure framework, as stated by ARP Digital's co-founder and co-CEO, Abdulla Kanoo.
The structured investment not only opens new doors for investors seeking a calculated approach to Digital assets but also enhances financial inclusion and access to innovative investment opportunities in the crypto space.
Expansion and Regulatory Developments
The Bitcoin-linked Structured investment will be available in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, showcasing the regional expansion of innovative financial products in the GCC Market. ARP Digital's services, including crypto trading, custody, and portfolio management, further solidify the region's position as a hub for Digital asset Investments.
Moreover, recent regulatory developments in Bahrain, such as granting Payment service provider licenses to companies like crypto.com, have fostered a conducive environment for crypto firms looking to operate in the MENA region. The well-regulated ecosystem and supportive infrastructure in Bahrain have attracted both domestic and foreign players in the crypto industry.
Evolving crypto Landscape in MENA
The MENA region has witnessed a significant increase in crypto Adoption and transaction volume, with Bahrain emerging as a key player in fostering a crypto-friendly environment. According to a Chainalysis report, MENA accounted for 7.5% of the global crypto transaction volume between July 2023 and June 2024, indicating a growing interest in Digital assets within the region.
Overall, NBB's launch of the Bitcoin-linked Structured investment marks a significant milestone in the GCC's financial landscape, showcasing the region's readiness to embrace innovative investment products and capitalize on the potential of Digital assets.
