Ripple, a major blockchain company and issuer of the XRP cryptocurrency, is expanding operations in the Kingdom of Bahrain through a partnership with a local fintech ecosystem builder.
Ripple on Thursday announced a strategic partnership with Bahrain Fintech Bay (BFB), a major local fintech incubator closely collaborating with government partners, including the Central Bank of Bahrain (CBB).
As part of collaboration, Ripple and BFB will work together to contribute to Bahrain’s digital asset ecosystem, including running fintech pilot projects and testing solutions in areas including cross-border payments, stablecoins, tokenization and more.
According to Ripple’s Middle East managing director, Reece Merrick, the company ultimately looks to offer its digital asset custody solution and Ripple USD (RLUSD) stablecoin to Bahrain’s financial institutions.
BFB’s work with Bahrain government
BFB was launched in 2018 as a major fintech hub in Bahrain’s Manama, through a public-private initiative involving the Bahrain Economic Development Board (EDB) and the FinTech Consortium to support fintech and innovation in the region.
The company has emerged as a major fintech partner of Bahrain’s central bank, announcing collaborations with CBB prior to its formal foundation in late 2017.
The central bank has repeatedly mentioned the work with BFB in official announcements, referring to the company as a key fintech partner in 2018 and 2019.
In June, BFB also participated in the Bahraini-Emirati Business Forum hosted by the Bahrain Chamber of Commerce and Industry, with BFB executive Tariq Mattar taking the stage at the event to discuss Bahrain’s fintech development.
Bahrain’s central bank allows issuance of USD stablecoins
“Bahrain has long been recognised as a financial services hub, and today this legacy is being further enhanced in the digital assets and blockchain space,” BFB chief operating officer Suzy Al Zeerah said.
“This partnership with Ripple reflects BFB’s commitment to bridging global innovators with the local ecosystem, creating opportunities for pilots, talent development, and cutting-edge solutions that will shape the future of finance,” the executive noted.
BFB’s partnership with Ripple came months after the central bank of Bahrain introduced a framework for licensing and regulating stablecoin issuers in July.
“Under the new stablecoin regulation, licensed stablecoin issuers are permitted to issue single currency stablecoins backed by Bahraini Dinar (BHD), United States Dollar (USD), or any other fiat currency acceptable by the CBB,” the CBB said in an official statement on July 4.
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Ripple’s move in Bahrain is yet another milestone for the company’s growing ties with global jurisdictions, as it holds more than 60 regulatory approvals in countries around the globe.
The news came as XRP (XRP) fell to the fifth-largest cryptocurrency by market capitalization on Thursday, after a strong rally in BNB (BNB) earlier this week pushed it past XRP to become the third-largest token by market value.
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