Bahrain to establish an AI Blockchain wholesale bank with ARP Group
Bahrain Mumtalakat Holding Company (Mumtalakat), the sovereign wealth fund of the Kingdom of Bahrain, and ARP Group have partnered to establish an AI-native and blockchain enabled wholesale bank headquartered in Bahrain, after receiving in principle approval from the Central Bank of Bahrain.
ARP Group is the holding company of ARP Global Capital and ARP Digital, the latter co-founded by Yusuf Alireza alongside Abdulla and Abdulaziz Kanoo.
The AI Blockchain enabled wholesale bank will commence regulated activities only after obtaining final authorization.
As per the press release, the partnership combines Mumtalakat’s long-term investment approach with ARP’s experience in institutional finance and digital financial infrastructure.
The AI Blockchain bank will be serving financial institutions, payment companies and businesses with cross border operations. It wants to simplify banking for clients whose needs span multiple markets and currencies.
Technology such as blockchain AI, seeks to reduce the complexity and cost of serving them. These technologies will connect to clients via APIs, with human oversight, governance and risk controls.
As for the products and services, they will be introduced in phases, informed by engagement with prospective clients.
Commenting on the partnership, His Excellency Shaikh Abdulla bin Khalifa Al Khalifa, Chief Executive Officer of Mumtalakat, said that financial services have long been a cornerstone of Bahrain’s economy, and as a sovereign wealth fund their role it to invest in opportunities that strengthen the sector’s competitiveness and support its continued evolution.
He added, “Through this partnership, we are bringing together an experienced institutional team with Bahrain’s well-established regulatory and business environment, further reinforcing the Kingdom’s position as a leading regional financial hub.
Yusuf Alireza, Chairman of ARP Group, also noted that institutional clients with complex cross-border needs still face fragmented banking services. He explained, “We see an opportunity to combine a regulated bank’s balance sheet and institutional relationships with blockchain enabled technology and AI designed into its operating model from the outset, making these clients more efficient to serve.”
The bank aims to support not only clients in Bahrain but across the Gulf and International markets.
ARP Group whose subsidiary already holds two licenses one in Bahrain and one in UAE, will definitely be supporting the bank. ARP Digital, secured a crypto Broker-Dealer license from Dubai’s Virtual Assets Regulatory Authority (VARA). This comes after it received its preliminary license in April 2026. A category 3 license allows ARP Digital to offer crypto trading service as an agent and as a principle as well as offering custodial and investment management services.
Back in 2025, ARP digital in Bahrain partnered with Bank of Bahrain and Kuwait (BBK), a major banking institution in the GCC to introduce regulated stablecoin infrastructure to enhance cross-border settlement capabilities enabling seamless transfer and conversion between digital assets and fiat currencies. While this year, Bahrain regulated AX Coin, a Subsidiary of AXG (Solowin Holdings), partnered with ARP Digital on Institutional Liquidity and Settlement which will connect regulated stablecoin infrastructure with institutional OTC liquidity and settlement rails across GCC and International markets.
