Ripple, a leading blockchain company and issuer of the cryptocurrency XRP, is expanding its operations in the Kingdom of Bahrain through a partnership with a local fintech ecosystem building company.
Ripple on Thursday announced a strategic partnership with Bahrain Fintech Bay (BFB), a leading local fintech incubator that works closely with government partners such as the Central Bank of Bahrain (CBB).
As part of the collaboration, Ripple and BFB will work together to contribute to Bahrain’s digital asset ecosystem, including implementing fintech pilot projects and testing solutions in areas such as cross-border payments, stablecoins, and tokenization.
The company is looking to eventually offer its digital asset custody solution and Ripple USD (RLUSD) stablecoin to financial institutions in Bahrain, said Reece Merrick, Ripple’s Middle East managing director.
BFB’s efforts with the Bahrain government
BFB was established in 2018 as a leading fintech hub in Manama, Bahrain through a public-private initiative involving the Bahrain Economic Development Board (EDB) and a fintech consortium that supports fintech and innovation in the region.
The company has emerged as a key fintech partner of the Central Bank of Bahrain, announcing its partnership with CBB ahead of its formal launch at the end of 2017.
The central bank has repeatedly mentioned its work with BFB in its official announcements, naming the company as a key fintech partner in 2018 and 2019.
In June, BFB also participated in the Bahrain-Emirate Business Forum hosted by the Bahrain Chamber of Commerce and Industry, where BFB executive Tariq Matar spoke at the event to discuss the development of fintech in Bahrain.
Bahrain Central Bank allows issuance of USD stablecoin
“Bahrain has long been recognized as a hub for financial services, and now this tradition is further strengthened in the digital assets and blockchain space,” said Suzi Al Zeera, Chief Operating Officer of BFB.
“This partnership with Ripple reflects BFB’s commitment to bridging global innovators and local ecosystems, creating opportunities for pilots, talent development, and cutting-edge solutions that will shape the future of finance,” the executive said.
The partnership between BFB and Ripple comes months after the Central Bank of Bahrain introduced a licensing and regulatory framework for stablecoin issuers in July.
“Under the new stablecoin regulations, licensed stablecoin issuers will be permitted to issue single-currency stablecoins backed by the Bahraini dinar (BHD), the US dollar (USD), or any other fiat currency acceptable to the CBB,” the CBB said in an official statement on July 4.
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With over 60 regulatory approvals in countries around the world, Ripple’s expansion into Bahrain marks another milestone in the company’s growing relationships with jurisdictions around the world.
The news comes as BNB (BNB) posted a strong rally earlier this week that made XRP (XRP) the third-largest token by market cap, before falling to the fifth-largest cryptocurrency by market cap on Thursday.
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