Ripple Expands into Bahrain Through Collaboration with Fintech Bay

Ripple, a prominent blockchain firm and issuer of the XRP cryptocurrency, is broadening its activities in the Kingdom of Bahrain through a collaboration with a local fintech ecosystem developer.

On Thursday, Ripple announced a strategic alliance with Bahrain Fintech Bay (BFB), a leading local fintech incubator that works closely with government partners, including the Central Bank of Bahrain (CBB).

Through this partnership, Ripple and BFB will collaboratively advance Bahrain’s digital asset ecosystem, engaging in fintech pilot projects and testing solutions in areas such as cross-border payments, stablecoins, tokenization, and beyond.

Reece Merrick, Ripple’s Middle East managing director, stated that the company aims to provide its digital asset custody solution and the Ripple USD (RLUSD) stablecoin to Bahrain’s financial institutions.

BFB’s Collaboration with Bahraini Government

BFB was established in 2018 as a significant fintech hub in Manama, Bahrain, through a public-private initiative that involved the Bahrain Economic Development Board (EDB) and the FinTech Consortium aimed at fostering fintech and innovation in the region.

The organization has become a primary fintech ally of Bahrain’s central bank, announcing partnerships with the CBB even before its official founding in late 2017.

The central bank has consistently highlighted its collaboration with BFB in official statements, referring to the organization as a key fintech partner in 2018 and 2019.

In June, BFB also took part in the Bahraini-Emirati Business Forum hosted by the Bahrain Chamber of Commerce and Industry, where BFB executive Tariq Mattar addressed the audience about Bahrain’s fintech progression.

Bahrain’s Central Bank Approves USD Stablecoin Issuance

“Bahrain has been recognized for a long time as a financial services hub, and this legacy is now being further strengthened in the digital assets and blockchain domain,” said Suzy Al Zeerah, BFB’s chief operating officer.

“This partnership with Ripple demonstrates BFB’s dedication to connecting global innovators with the local ecosystem, generating opportunities for pilot projects, talent development, and advanced solutions that will shape the financial future,” the executive remarked.

BFB’s collaboration with Ripple followed the central bank of Bahrain introducing a framework for licensing and regulating stablecoin issuers in July.

“According to the new stablecoin regulations, licensed issuers can release single currency stablecoins backed by the Bahraini Dinar (BHD), United States Dollar (USD), or any other fiat currency authorized by the CBB,” the CBB stated in an official announcement on July 4.

Related: Qatar bank taps JPMorgan’s blockchain for faster US dollar payments

Ripple’s expansion in Bahrain marks another significant achievement for the company as it continues to strengthen its connections with global jurisdictions, boasting more than 60 regulatory approvals worldwide.

The announcement coincided with XRP (XRP) dropping to the fifth-largest cryptocurrency by market cap on Thursday, as a significant increase in BNB (BNB) earlier this week saw it exceed XRP, making it the third-largest token by market value.