Bahrain allows issuance of USD and Bahrain dinar stablecoins

Bahrain allows issuance of USD and Bahrain dinar stablecoins

After the Central Bank of Bahrain (CBB) issued its consultation paper on stablecoins back in October 2024, it has now issued the full stablecoin regulation on July 2nd 2025, and is offering licenses to stablecoin issuers, custodians, for fiat backed stablecoins that could be either in Bahraini Dinar or United States Dollars or any other fiat currency acceptable to the CBB.

Additionally, the Central Bank of Bahrain is allowing stablecoin issuers to issue yield bearing stablecoins which pay passive returns to its clients only from either interest or rewards ( for Sharia compliant stablecoins) which is earned from the investment of the reserve assets.

Also regulated are sharia compliant stablecoins. However all stablecoin issuers will need to meet requirements set by the Central Bank.
As per the stablecoin module stablecoin issuers seeking to issue and offer stablecoins, control the total supply of stablecoins or mint and burn stablecoins as well as manage and safeguard reserve assets and custody of stablecoins will need to meet the requirements set out in the module.

As per the document, ” Stablecoin issuers must provide the CBB with detailed description of the new services, the resources required and the operational framework for such service.” All service providers need to be licensed before undertaking stablecoin services.

Quality and liquidity of stablecoin are vital

The CBB notes that part of the approval of a stablecoin will include looking into the quality and liquidity of the stablecoin, as well as credit and concentration risk reserve assets in those currencies. It also notes that the Central Bank may reject an application for issuance of a stablecoin if it determines that the issuance thereof might cause damage, dilute or be contrary to the interests of national economy, the holders of the stablecoin or public investors in general.

Also applicants need to have at least three years track record in either issuing stablecoins or working in the crypto asset domain.

Moreover the license fee set by the CBB is a variable one 0.25% of operating expenses.

In terms of reserve asset composition, stablecoin issues can only keep reserves in cash and deposits with Banks rates at a minimum of AA- or equivalent, or debt securities with central bank, or repurchase agreements backed by short term government money market funds.

Difference between UAE stablecoin regulations and Bahrain

UAE Stablecoin Payment Token Services Regulation came out laying down the rules and conditions by the Central Bank of UAE for licenses pertaining to payment tokens, not allowing algorithmic tokens to be included and only allowing foreign stablecoins to be used to purchase virtual assets, while the AED dirham stablecoin became the only stablecoin to be allowed for payments in the country.

The Bahrain Central Bank has gone into an even further course, allowing for both Bahrain Dinar and USD stablecoins to be issued and utilized as well as sharia backed stablecoins. Moreover unlike the UAE, Bahrain is allowing yield bearing stablecoins to be issued.

The CBB stablecoin regulation compared to the U.S. Genius Act stablecoin regulation is similar except for the yield bearing factor and the fact that U.S did not open it up to other fiat currencies. In the Genius Act The bill mandates that stablecoins be fully backed by high-quality, low-risk assets like U.S. dollars, short-term Treasury bills, or insured bank deposits. The act defines “payment stablecoins” as digital assets issued for payment or settlement and redeemable at a fixed amount, like $1.

JP Morgan has noted that stablecoin market could hit $500 million by 2028. Stablecoin issuers have collectively generated over $10 billion in revenue, marking a significant milestone for the sector. This growth is largely attributed to the increasing profitability of stablecoins, which has driven expansion and innovation within the market. Tether, the leading stablecoin issuer, has amassed $6.56 billion in revenue, underscoring its dominant position. Other notable issuers include Circle, which earned $1.89 billion, Sky Protocol with $384 million, and Ethena with $332 million.


The Abu Dhabi Securities Exchange to list first ever MENA blockchain based digital bond

The Abu Dhabi Securities Exchange to list first ever MENA blockchain based digital bond

Abu Dhabi Securities Exchange (ADX), the largest exchange in the UAE and second largest exchange in the Middle East North Africa (MENA), has started the pricing stage as an initial step towards listing the first ever DLT ( Distributed Ledger Technology)/ Blockchain digital bond in the MENA region.

As per the announcement the DLT digital bond will be issued by First Abu Dhabi Bank (FAB) using HSBC Orion, digital asset platform. The listing on ADX is a collaboration of all three entities powered by HSBC Orion which is operated by the Central Moneymarkets Unit (CMU) in Hong Kong, and structured with support from leading international law firms, reflecting the high standard of governance.

HSBC Orion has led the way in the digitalisation of the capital market infrastructure. It facilitated the launch of the European Investment Bank’s first-ever digital bond in pound sterling2, and the world’s first multi-currency digital bond offering as well as the largest digital bond issuance for the HKSAR Government. HSBC is also the first bank in the world to offer tokenized ownership in physical gold.

Global investors can access the digital bond through accounts held with CMU, Euroclear and Clearstream, onboarding onto HSBC Orion as direct participant, or via their existing custodian who can participate through one of the above options.

Introducing the digital bond into ADX’s growing list of financial products supports its broader ambition to offer innovative financial instruments and signifies the Exchange’s pioneering role in introducing tokenized finance. Digital bonds, fixed-income securities issued and recorded on blockchain technology, offer operational efficiencies, improved settlement cycles, reduced counterparty risk, improved security and enhanced transparency for institutional investors.

HSBC acted as the sole global coordinator, lead manager and bookrunner on the transaction, and played a central role in bringing the end-to-end blockchain-based issuance to the MENA region.

Abdulla Salem Alnuaimi, Group Chief Executive Officer of ADX, said, “The successful issuance of MENA’s first blockchain-based digital bond, in close collaboration with FAB and HSBC, marks a defining moment in our journey to transform capital markets through innovation. ADX was central in facilitating this milestone, ensuring the bond’s seamless integration with existing post-trade infrastructure and compatibility with global settlement standards.”

He added that this initiative not only expands access to institutional grade digital instruments but lays the foundation for broader class of tokenized assets which include green bonds, sukuk, real estate linked products and more. He noted, ” It reinforces Abu Dhabi’s position as a leading global financial centre. It aligns with the UAE’s national agenda to build a diversified, technology-driven capital market anchored in transparency, resilience, and long-term growth.”

Lars Kramer, Group Chief Financial Officer at First Abu Dhabi Bank (FAB), also explained, “This milestone marks a significant advancement in our innovation journey, establishing FAB as the issuer for the first blockchain-based digital bond in the MENA region. Together with ADX and HSBC, we are setting new benchmarks in efficiency, transparency, and security, while aligning with the UAE’s progressive regulatory framework. We are supporting investors navigate the global digital assets landscape. This bond issuance accelerates the development of a robust digital capital markets ecosystem in the UAE.”

Mohamed Al Marzooqi, Chief Executive Officer, UAE, HSBC Bank Middle East Limited, added that the successful launch of MENA’s first digital bond on ADX using HSBC Orion shows how they are transforming the promise of tokenization into reality within the MENA region. He explains, “This is a significant milestone towards a future where digital assets become a mainstream part of the Middle East’s financial landscape.”

This comes after the Securities and Commodities Authority in UAE issued its security and commodity token regulation.

Saudi Fundraizerly for tokenizing fundraising signs up alternative investment manager

Saudi Fundraizerly for tokenizing fundraising signs up alternative investment manager

Fundraizerly, the end-to-end platform for investment management, digital fundraising and asset tokenization, has been selected by an alternative-investment manager with AUM in the low nine-figure range to power its next generation of closed-end funds.

As per the press release, the client’s identity remains confidential under a mutual non-disclosure agreement, but the firm has granted written consent to share aggregate details of the engagement. Fundraizerly and the client may release a named case study once regulatory filings and internal policies permit.

Using Fundraizerly’s tokenization engine on the Base Layer-2 network, the manager will issue fund units as compliant on-chain tokens—unlocking real-time cap-table visibility, automated distributions and programmable transfer rules. Base network, incubated by Coinbase, provides low fees and fast settlement while inheriting Ethereum’s security.

To enhance investor servicing, the mandate also activates Fundraizerly’s AI Assistants—domain-specific large-language-model agents trained on the fund’s portfolio data. Industry research shows that more than two-thirds of enterprises are already training staff or hiring talent to deploy Gen-AI solutions.

“Tokenization has become the operating system of modern funds,” said Haiyan Alsaiyed, CEO of Fundraizerly. “By combining our secure issuance stack with Base’s scalability and AI-driven investor support, this partnership sets a new benchmark for mid-market managers.”

The announcement comes as the on-chain value of tokenised real-world assets (RWAs) has surpassed US $24 billion across public blockchains—highlighting accelerating institutional adoption. (forbes.com)

Crypto mining platform Hut 8 to enter the UAE

Crypto mining platform Hut 8 to enter the UAE

Hut 8 (NASDAQ:HUT) an energy infrastructure platform integrating power, digital infrastructure, and compute at scale to fuel next-generation, energy-intensive use cases such as Bitcoin mining and high-performance computing, has registered to open an office in Dubai UAE. The company also disclosed it had raised $220 million to purchase Bitcoin and mining infrastructure and has announced that by March 2025 it has approximately 10.8 GW of development capacity.

The announcement was published in an article in Bloomberg. CEO of Hut 8, Asher Genoot noted that the new Dubai office would enhance the precision and efficiency of Hut 8’s capital strategy.

Hut 8 confirmed to Bloomberg that the Dubai office would house a new team focused on trading and digital asset strategies. The company already operates facilities in Texas, New York, and Alberta, Canada.

Hut 8 joins UAE based Phoenix Group, as well as Marathon Digital Holding who also have operations in the UAE. The UAE has been building its data center capacities as it seeks to lead in both AI and digital asset infrastructure.

In March 2025, Hut 8 announced the launch of American Bitcoin Corp. (“American Bitcoin”), a majority-owned subsidiary of Hut 8 focused exclusively on industrial-scale Bitcoin mining and strategic Bitcoin reserve development. The launch of American Bitcoin follows the strategic contribution of substantially all of Hut 8’s ASIC miners to and in exchange for a majority interest in American Data Centers, Inc., a company formed by a group of investors including Eric Trump and Donald Trump Jr. In connection with the transaction, American Data Centers, Inc. was subsequently renamed and relaunched as American Bitcoin.

However a Hut 8 spokesperson told Bloomberg that the Dubai office is not related to its relationship with American Bitcoin.

Other countries such as Oman have also invested heavily in powering datacenters for Bitcoin mining and other applications.