UAE M2 crypto exchange engages Haruko for treasury risk management

UAE M2 crypto exchange engages Haruko for treasury risk management

UAE homegrown M2, cryptocurrency exchange and custodian has engaged Haruko, an institutional-grade infrastructure solution created for companies deploying capital across the digital asset ecosystem to provide M2’s treasury trading team with the tremendous insight required for effective treasury management, compliance, investor reporting and financial control functions.

Haruko provides the most comprehensive digital asset infrastructure solution for institutions deploying capital across the digital asset ecosystem. Seamless consolidation of positions across exchanges, on-chain and OTC activity with access to real-time and historical pricing, risk and P&L reporting provides the transparency needed for effective treasury management, compliance, investor reporting and financial controllership functions.

M2’s Managing Director of Treasury Kim Wong said, “With Haruko, we can efficiently manage M2’s treasury portfolio and risk in real time. Haruko’s advanced tools empower our team to seamlessly track asset flows, conduct scenario analyses, and closely monitor counterparty credit as well as other market exposures, enabling proactive risk management.”

“These capabilities allow us to identify and mitigate risks across our digital asset portfolio, safeguarding against potential downside impacts. This is a critical enhancement to our strategies and operations, particularly during periods of heightened market volatility.”

“As risk management continues to become a critical workflow in the digital asset space, Haruko continues to deliver an exceptional institutional-grade solution which enables digital asset managers to view their risk in a combined and transparent way,” said Shamyl Malik, Chief Executive Officer and Co-Founder of Haruko.

He added, “We are delighted to be working with M2 to provide our comprehensive suite of risk and portfolio management products, significantly improving operational efficiency and streamlining their workflow”.

On October 31st, UAE crypto exchange M2, underwent a cybersecurity breach involving $13.7 million but was able to quickly address the incident within 16 minutes. M2 announced that it fully resolved the issue, restoring all customer funds and taking responsibility for any potential losses. M2 on its website stated, “We would like to report that the situation has been fully resolved and customer funds have been restored. M2 has taken full responsibility for any potential losses, demonstrating our unwavering commitment to safeguarding our customers’ interests. All services are now fully operational with additional controls in place.”

Greengage to promote green digital assets sector with e-money solutions

Greengage to promote green digital assets sector with e-money solutions

Hub71 startup, Greengage, a blockchain enabled digital finance pioneer serving entrepreneurs, SMEs, family offices and digital asset firms with e-money solutions and B2B lending, has joined the Abu Dhabi Sustainable Finance Declaration to help promote a sustainable digital assets sector in Abu Dhabi.

Leveraging blockchain technology, the Hub71-based startup aims to drive efficiencies in carbon markets and offer SME clients access to carbon credit opportunities for meeting Scope 3 targets while supporting initiatives that make the industry, particularly bitcoin mining, more energy-efficient through advanced technology and investments in clean energy cryptocurrencies.

As per the release, the company will focus on increasing transparency in digital assets to ensure verifiable sustainable practices, fostering trust, and supporting ESG compliance and sustainable regulation and policy.

Sean Kiernan, CEO of Greengage, commented, “We are proud to join the Abu Dhabi Sustainable Finance Declaration, alongside esteemed signatories like our partners at Zumo. Our commitment to long-term client relationships aligns seamlessly with sustainable business practices, reflecting Greengage’s brand mission to promote ‘green’ growth and environmental responsibility, with a clear focus on sustainability as our core ‘gage’ for collateral.”

Greengage is also dedicated to increasing transparency to ensure that sustainable practices in digital assets are real and verifiable, which will help build trust and ensure ESG compliance. To date, Greengage supports the Blue Carbon Gold project, which tokenizes blue carbon initiatives that capture carbon in coastal ecosystems, such as UAE mangroves, which are high impact assets.

The Abu Dhabi Sustainable Finance Declaration, is a voluntary, membership-based initiative launched by Abu Dhabi Global Market (ADGM) and endorsed by the Ministry of Climate Change and Environment, the Central Bank, and the Securities and Commodities Authority. Over 135 organisations, including Greengage, have signed the declaration, committing to integrate ESG considerations into their business models, products, and investments.

Bahrain Beyon Money partners with Crypto.com for digital payments and AI

Bahrain Beyon Money partners with Crypto.com for digital payments and AI

Bahrain based Beyon Monay, and Crypto.com have partnered to enhance transaction solutions and explore innovative opportunities in digital payments and AI.

As per the press release, the companies will explore collaborations in the transaction and payments sectors, as well as pursue joint innovation in artificial intelligence and open banking.

The partnership will leverage Beyon Money’s role as a financial super-app and payment platform, along with Crypto.com’s established retail products. The aim is to improve the overall experience for customers through enhanced services.

“As we continue to expand our presence in Bahrain, we are excited to investigate ways we can partner with Beyon Money, who are really leading the way in the digital payments space in the Kingdom,” said Eric Anziani, President and COO of Crypto.com.

“Beyon Money has an exciting product structure and reach in Bahrain, with a solid reputation and strong user base and by working together we hope to grow both of our brand’s innovative product range and services we provide to our Bahrain customers.”

“Beyon Money is committed to forging partnerships with leading global players,” states Roberto Mancone, CEO of Beyon Money. “Our collaboration with Crypto.com, which has recently obtained its Payment Service Provider license in Bahrain, will focus on co-marketing and promoting our respective cards. We will also work on integrating our platforms to streamline cryptocurrency purchases on the Crypto.com app, along with other projects that explore innovative technologies creating value through tangible use cases for our clients.

Previously, Crypto.com and Bahrain based BENEFIT, a FinTech and electronic financial transactions services signed an MOU ( Memorandum of Understanding) which aims at discussing combining their expertise and help expand the digital assets and fintech ecosystem in Bahrain including areas such as payment integration and prepaid card capabilities.

In September 2024, Crypto.com received a crypto payment service provider license from the Central Bank of Bahrain allowing it to offer e-money and fiat based payment services regionally, including prepaid cards.

Crypto.com had already received a crypto exchange license from Dubai’s virtual asset regulator in UAE, and considers this license as part of its expansion plans in the GCC region.

UAE Commercial Bank International partners with Zumo digital assets as a service platform

UAE Commercial Bank International partners with Zumo digital assets as a service platform

UAE Commercial Bank International (CBI), a leading UAE bank, has partnered with Zumo, an award-winning digital-assets-as-a-service platform registered with the UK Financial Conduct Authority (FCA) to enable both parties to explore the tracking of digital asset sustainability.

As per the press release this marks a significant step in CBI’s commitment to furthering innovation and offering cutting-edge digital solutions to its clients.

The UAE’s digital assets market is projected to generate $453.20 million in revenue by 2024, reaching an estimated $616.80 million by 2028.

The Commercial Bank of Dubai (CBD) recently launched a dedicated accounts for Virtual Asset Service Providers (VASPs) to manage client money and regulatory prudential requirements, in compliance with the latest regulations issued by the Central Bank of UAE and the Dubai Virtual Assets Regulatory Authority (VARA). The first VASP to be onboarded is Laser Digital a crypto broker and investment service provider, a subsidiary of Japanese Nomura.

Giovanni Everduin, Chief Strategy & Innovation Officer of Commercial Bank International, said, “Our partnership with Zumo marks a significant milestone in CBI’s ongoing commitment to innovation and sustainability. Aligned with our vision of partnership driven innovation, we look forward to collaborating with Zumo to become one of the first banks in the world to provide carbon footprint insights with carbon offsetting for digital assets. This revolutionary capability will ensure that, as digital assets become further embedded within the financial ecosystem, customers and institutions have the required tools and data to ensure their sustainability goals are tracked and achieved.”

Clark Povey, Chief Operating Officer of Zumo, added, “We’re delighted to announce our strategic partnership with Commercial Bank International, one of the UAE’s most innovative banks, headquartered in Dubai. Our collaboration with CBI will see Zumo’s pioneering digital assets and blockchain technology complement CBI’s financial expertise and innovative approach to drive sustainability. Zumo solves the biggest challenges in digital assets for financial institutions by providing business-critical technologies to navigate the rapidly evolving digital asset landscape, and with Zumo’s technology and leadership in sustainability of digital assets, the exciting journey ahead is just beginning.”

Zumo provides the critical infrastructure required by financial institutions to implement sustainable digital asset solutions.

As an early signatory of the Crypto Climate Accord, a signatory of the Abu Dhabi Sustainable Finance Declaration and a key contributor to industry guidelines for the decarbonization of digital assets, Zumo has firmly established itself as a leader in advancing sustainability within the digital asset sector. By aligning Zumo’s technology and expertise with CBI’s innovative approach to banking services, this partnership is poised to accelerate the adoption of digital assets within the UAE’s banking ecosystem.

Prior to this, Commercial Bank International and Fuze, MENA’s digital asset infrastructure provider, signed a Memorandum of Understanding that would allow both parties to jointly explore digital assets use cases under the comprehensive regulatory frameworks of the UAE. The agreement between CBI and Fuze provided the foundations for innovative new use cases that leverage the potential of blockchain and digital assets, including investments and payments.

UAE Phoenix Group reports $35.9 million in revenues from crypto mining, a 7% quarter decline

UAE Phoenix Group reports $35.9 million in revenues from crypto mining, a 7% quarter decline

UAE’s multi-billion dollar tech conglomerate, Phoenix Group PLC, listed on the Abu Dhabi Securities Exchange (ADX: PHX) has announced its Q3 2024 results, reporting core revenue of $35.9M and investment income of $68.5M. Core revenue is primarily generated from self-mining, with additional contributions from trading and hosting services. The investment income, drawn from digital assets and other diversified Web3 investments, reflects the company’s active capital deployment strategy.

As per the press release, total assets saw a 148% year-over-year increase in the first nine months of 2024, rising to $977.6 million from $394.1 million, with a 6% quarter over quarter increase.

The self-mining segment achieved significant growth, surging 285% year-over-year to $26.6 million in Q3 2024, up from $6.9 million in Q3 2023. Earnings per share for Q3 2024 were reported at $0.008.

Q3 2024 revenue came in at $35.9M, with a decline in trading and hosting revenue due to the company’s strategic shift towards deploying more inventory into self-mining. Self-mining revenue has shown resilience, with only a 7% quarter-over-quarter decrease despite the full impact of the halving, increased mining difficulty, and lower BTC prices. Phoenix Group anticipates improvements in mining economics as early indicators of a new bull market begin to emerge.

The company achieved robust returns from investments, marking a 16% quarter-over-quarter growth driven primarily by gains from new digital asset investments.

As per the release, Phoenix Group demonstrated a strong ability to generate value across diverse Web3 investments, with some assets, such as Solana tokens, achieving over 4x returns. The company is actively pursuing a strategy to increase capital deployment into foundational deals and incubation projects. Despite a challenging quarter for the industry, Phoenix Group has shown notable resilience and a strong bottom line, outperforming many peer mining companies.

“Our Q3 results reflect the effectiveness of our adaptive investment strategy, particularly within the self-mining sector and across digital assets. Phoenix Group remains committed to capitalizing on emerging opportunities within Web3 and digital assets, ensuring we continue to lead with innovation and resilience. As we expand into foundational projects and incubation deals, we are well-positioned to provide significant value to our shareholders and support growth in the region’s tech landscape.” said Seyed Mohammad Alizadehfard (Bijan), Co-Founder and Group CEO of Phoenix Group.

“Our Q3 achievements underscore Phoenix Group’s dedication to proactive and sustainable growth, especially within the self-mining and digital asset sectors. By leveraging market dynamics and focusing on foundational investments, we continue to unlock new value streams that fortify our resilience and enhance our market leadership. We remain committed to aligning our strategies with shareholder interests, building a robust platform that stands resilient against market volatility while advancing the UAE’s tech landscape.” said Munaf Ali, Co-Founder and Group Managing Director of Phoenix Group.

In May 2024, Phoenix Group announced its Q1 results, showcasing a net income of $66.2 million which it noted was representing a growth of 166% year-on-year. As per the press release, total assets surged by 237% year-over-year, soaring to $879.3 million from $261 million. ⁠

At the time Phoenix Group noted that quarter-over-quarter growth in total assets stood at 5%, while revenue experienced an 18% quarter-on-quarter increase, reaching $68.9 million. In addition gross profit saw a robust 82.8% quarter-on-quarter rise, amounting to $23.28 million, while total comprehensive income expanded by 312% year-on-year to $102.28 million and by 33.7% quarter-on-quarter. As such the earnings per share for Q1 2024 amounted to $0.011.

It would seem that earnings per share has decreased in Q3 to $0.008 from $0.011 in Q1.

Emirates NBD opens digital assets Lab academia

Emirates NBD opens digital assets Lab academia

Emirates NBD, a lMENAT banking group in the MENAT (Middle East, North Africa and Türkiye) region, has announced the extension of its Digital Asset Lab to now also include academia, through the launch of its Future Leaders Outreach Program. The program was launched at an event hosted at and facilitated by DIFC Innovation Hub, Emirates NBD’s long-term strategic partner.

The Digital Asset Lab currently has four members including founding members PwC and Fireblocks, and enterprise distributed ledger technology platform, R3 and the blockchain data platform, Chainalysis as additional members.

Through the Future Leaders Outreach Program and supported by early partners including the University of Sharjah and the Higher Colleges of Technology, the bank aims to drive its innovation mission while nurturing future talent and supporting the Dubai Economic Agenda D33. Academic partners will have access to masterclasses from Emirates NBD’s internal experts alongside industry specialists from Digital Asset Lab members Fireblocks, PwC, Chainalysis, and R3. These sessions will cover a range of innovative topics, including real-world business experiments. Through these hands-on learning opportunities, students will gain valuable insights into the evolving digital asset landscape and diverse applications across various industries.

The Digital Asset Lab was announced in May 2023 with the goal of enabling and accelerating digital asset and financial services innovation in the UAE.

Saud Al Dhawyani, Group Chief Platform Officer at Emirates NBD, said, “We are excited to announce the launch of our Future Leaders Outreach Program. As a leading national bank, we have always remained committed to investing in our youth to nurture their talent that will contribute to national efforts of building a strong digital economy. Thus, the extension of Emirates NBD’s Digital Asset Lab to also include education partners was the clear progression in its growth journey. We look forward to the success of the program, supported by our members and now educational partners.”

Dr. Hatem Tamimi, Computer Information Science Associate Executive Dean, Higher Colleges of Technology, noted, “It is with great pleasure that we are collaborating with Emirates NBD on its National Digital Talent Program as well as its Digital Asset Lab. The Digital Asset Lab will provide a platform for HCT students to access learning portals and a sandbox environment that complements our students applied and competency-based approach to learning. We see this as a win-win-win partnership.”

His Excellency, Prof. Hamid M. K. Al Naimiy, Chancellor of the University of Sharjah, said: “The Digital Asset Lab initiative offers our students an outstanding opportunity to engage with the fast-evolving world of digital assets. Through our collaboration with Emirates NBD, we are enriching their academic journey while equipping them with the skills and expertise needed to become leaders in the digital economy. This partnership underscores our university’s commitment to innovation and shaping the future leaders of the UAE.”

Mohammad Alblooshi, Chief Executive Officer, DIFC Innovation Hub, said: “We are proud to support Emirates NBD’s Future Leaders Outreach Program. This initiative aligns perfectly with DIFC’s mission to foster innovation, enterprise, and talent across sectors in the MEASA region. By collaborating with academia and industry leaders, we are creating a robust platform for nurturing future digital talent and driving the UAE’s innovation agenda forward.”

The Hashgraph Association and DIFC Courts launch digital assets Will built on Hedera

The Hashgraph Association and DIFC Courts launch digital assets Will built on Hedera

The Dubai International Financial Centre (DIFC) Courts in partnership with The Hashgraph Association and its partner in the UAE Deca4 Consultancy have launched a DLT Hedera network enabled Digital Assets Will solution. Unveiled at GITEX Global 2024, live demonstrations showcased new service platforms, accessibility, functionality, and security protocol features.

The Digital Assets Will empowers individuals to distribute their digital assets using a non-custodial DIFC Courts wallet. A non-custodial wallet also allows an individual the freedom to reallocate the assets to the desired beneficiaries within their wallet, and for full control to mobilize in and out of the wallet in their lifetime, with assets finally distributed as ‘specific gifts’.

Digital format assets recognized by the wallet include ETH; BTC; MATIC; USDC; USDT; and HBAR. Future enhancements to the system will include supported NFT standards ERC 721; ERC 115; Ordinals; and HTS (Hedera Token Service).

The new Will template joins the extensive legacy Will types offered by the DIFC Courts, including the Full Will, the Property Will, the Financial Assets Will, the Business Owners Will and the Guardianship Will. An existing online automated Will drafting service, and a Virtual Registry reinforce a 360 digitally accessible service, allowing those living domestically and overseas to create and register a DIFC Courts Will. Investors and residents can access it from anywhere in the world and be connected, via video link, to a compliance officer sitting in Dubai.

Wills can also then be added to the global digital vault, tejouri. Launched in 2022, tejouri provides a unique platform that functions simultaneously as a cloud vault and an online safe for data, supported by a state-of-the-art onsite DIFC data centre and a secondary UAE-based backup data centre. Access to all data is restricted to the ‘vault holder’ and the listed intended recipients, guaranteeing zero knowledge proof privacy principles.

All uploaded life admin files are secured under the highest standards of security regulation, using multiple factors of authentication, encrypted data, personalized biometric information and safe-keeping ledgers through advanced cryptography. Using Distributed Ledger Technology (DLT), tejouri can ensure the transmission of your entire portfolio to your designated stakeholders, or loved ones, at a key time.

Also announced as part of the new upcoming digital services is the Notary Service, which will be the notarizing English documents only and is the first-of-its-kind service in the UAE. The service will provide three (3) options for users; an automated self-service; a live virtual system; and an in-person service. Users of the service will also have the option to utilize an authentication service through primary source verification (PSV).

An electronic or physical stamp and seal will be issued with each document and notarized documents will be verified using advanced cryptographic methods, powered by Hedera Blockchain, by logging notarization events with a timestamp on the blockchain. Preservation and integrity of documents will be ensured using distributed ledger technology (DLT) by converting documents to NFTs, in compliance with ERC20 standards. User privacy will be maintained at all times through advanced encryption methods and privacy-preserving protocols, ensuring that sensitive information is fully protected throughout the entire process.

Document types accepted for attestation and notarization will include, but is not limited to, affidavits, witness statements, Wills, power of attorney, trade licenses, title deeds, health certificates, marriage certificates, and bank statements.

As part of the mission of the DIFC Courts to provide an effective portfolio of dispute resolution mechanisms, a new alternative dispute resolution avenue will also be provided. The Mediation Service Centre will enable parties to negotiate resolution of their dispute with the help of DIFC Courts Part III registered mediators.

Parties will be able to choose the mediators and agree fees and terms in advance, as well as the choice to conduct mediation meetings online using the newly upgraded and AI-enabled Court Management System (CMS), or in-person at the DIFC Courts premises.

His Excellency Justice Omar Al Mheiri, Director, DIFC Courts, said: “In our new digitally driven societies, individuals and businesses are demonstrating increased desire for easily accessible public services. The strong growth momentum arising from the implementation of the Dubai Economic Agenda D33, and the Dubai Digital Strategy, has touched a diverse range of sectors, including government legal services. Our obligation is to deploy the latest emerging technologies to facilitate this growth and demand. Breaking down the boundaries of access to justice sits at the core of our operations and these new digital services provide ease of process across administrative tasks, such as notarisation, to more complex matters involving alternative dispute resolution and inheritance. The DIFC Courts, together with its public and private sector partners, is proud to spearhead some of the UAE’s most progressive government legal services, supported by smart technology implementations.”

The new suite of services were launched with the support of The Hashgraph Association, specialists in building Distributed Ledger Technology ecosystems, with Hedera technology utilised by the DIFC Courts to construct a bespoke DLT architecture and establish access to a decentralised trust application.

Kamal Youssefi, President, The Hashgraph Association, said: “We are proud to be part of this impactful journey and reaffirm our continued support to the DIFC Courts in launching both the Digital Assets Will, as well as the Notary Service, powered by Hedera DLT platform. This project underscores our commitment to strengthening decentralised infrastructures contributing to digital innovation across UAE. Through our partnerships and projects across the MENA region, with a focus on the GCC, we are committed to propelling the Web3 ecosystem and fostering the growth of Hedera network, with innovation programmes and strategic initiatives launched in Saudi Arabia, Qatar, Morocco and beyond. Working with trusted partners such as Deca4 Advisory and the DIFC Courts is a testament to the strength of public-private sector cooperation.”

Deca4 Advisory also supported the DIFC Courts with architecting the new digital services, as well as support from the DataFlow Group, who specialise in Primary Source Verification (PSV) solutions and background screening and provided a checkpoint for tamper-proof, verifiable credentials of documentation entering the DIFC Courts service systems.

Mohammed Mahfoudh, CEO, Deca4 Advisory, said: “The DIFC Courts is pioneering the integration of advanced technologies, setting a benchmark for government and semi-government entities in the UAE, the region, and globally. Our partnership with The Hashgraph Association and Hedera has been a key pillar in the success of this project, allowing us to build a deep architecture on Hedera and develop cutting-edge solutions. We are creating unique and practical use cases that will drive broader market adoption, especially with the Courts leading this transformative journey.”

Sunil Kumar, Chief Executive Officer, DataFlow Group, said: “At DataFlow, we are proud to collaborate with the DIFC Courts to introduce a new era of digital public services aligned with the UAE’s vision for digital transformation. By integrating our advanced AI-driven solution for document tampering detection and image forensics, we enhance the security and efficiency of these services, enabling fraud detection within seconds. This partnership strengthens our long-standing relationships with government authorities and represents a crucial step toward combating document fraud, reducing processing times, and increasing confidence in decision-making. As a leading verification and digital services organization, we remain committed to delivering innovative solutions that promote trust, transparency, and convenience in public services.”

The DIFC Courts is currently operating on a new roadmap for the years 2022 – 2024, which includes a strategic work plan that brings more national cohesion to the Courts’ projects and initiatives in line with the ‘D33’ economic agenda and the Dubai Digital Strategy. This in turn is providing effective support for both the federal and local Dubai strategic goals.

GCC Electronic Government Ministerial Committee approves Qatar’s digital asset framework

GCC Electronic Government Ministerial Committee approves Qatar’s digital asset framework

During the 8th GCC eGovernment Ministerial Committee meeting held in Qatar, which discussed the launch of eGovernment Guidance Strategy (2024-2030) as well as approving the unified digital asset framework that was prepared by Qatar. The committee also reviewed the minutes of sub-committee meetings, which included discussions on joint electronic services, unified software procurement, artificial intelligence, emerging technologies and digital trust services teams.

In his opening speech, HE the Minister of Communications and Information Technology Mohammed bin Ali al-Mannai stressed the importance of co-operation between the GCC countries in the fields of communications and information technology, highlighting the significant impact of these efforts in achieving the shared goals of member states.

He said: “Our co-operation today reflects the depth of the friendly and long-standing ties between our countries, and our mutual commitment to enhancing integration and unifying efforts in the postal and communications sectors, which play a crucial role in developing our national economies and enhancing competitiveness at both the regional and international levels.”

The minister added: “We are confident that this meeting will contribute to strengthening co-operation between the GCC countries and will be an important step towards realizing our aspirations in building a prosperous and secure digital society. What we have achieved so far is just the beginning of a series of achievements we aim to accomplish by establishing a strong and advanced technology sector that contributes to creating new job opportunities and seeks to increase investments by adopting innovative business models and localizing the latest technological advancements.”

The committee discussed key issues on agenda, including the launch of the eGovernment Guidance Strategy (2024-2030), developed under the leadership of Bahrain, which realigns the vision, goals and work plans aimed at meeting current trends and future challenges.

This follows the completion of the previous strategy launched in 2014, which helped GCC countries achieve high rankings in the United Nations eGovernment Readiness Survey and laid the groundwork for digital transformation within the member states.

The committee has approved the unified framework for digital access for GCC countries prepared by Qatar.

It praised Saudi Arabia’s Digital Government Authority for successfully hosting the fifth edition of the GCC Digital Government Award during the second Digital Government Forum in December last year and approved a proposal to organize the award annually in the country holding the presidency.

Qatar recently announced its digital assets framework in September 2024.

Bahrain central Bank licenses ATME digital assets tokenization exchange

Bahrain central Bank licenses ATME digital assets tokenization exchange

The Central Bank of Bahrain has recently licenses digital assets exchange ATME launched at FinTech Forward 2024. ATME aims to democratize access to a wide range of previously illiquid assets through ownership fractionalization using tokenized assets.

Built on the permissioned blockchain, Hyperledger Fabric network, ATME facilitates the conversion of traditionally less liquid real-world assets into digitally tradable, more liquid tokens. By incorporating the innovation of tokenization into established financial instruments, ATME enables businesses to gain access to new, more cost-effective and time-efficient ways of raising capital. Meanwhile, it opens doors to new, high-value investments and portfolio diversification for investors.

Alex Lola, CEO ATME stated, ” Tokenization is altering the rules of the game. It eliminates the need for a multitude of well paid intermediaries, facilitates greater accessibility, and inclusivity in the debt markets. It allows entities of all sizes to optimize their balance sheets and access new opportunities.”

According to the Boston Consulting Group (BCG), the total size of tokenized illiquid assets, including real estate and natural resources could reach $16.1 trillion by 2030.

ATME provides a comprehensive range of services that optimize the capital raising process and enhance investment potential. These services encompass initial token configuration, smart contract development, token minting and distribution to secondary market trading. Expert advisory is also provided on structuring, guidance on choosing the right token types, and investor onboarding.

Alex Lola recently met with H.E. Abdulla bin Adel Fakhro, Minister of Industry & Commerce. The productive discussion focused on the immense potential of blockchain and secure tokenization to unlock diverse investment opportunities.

The National Bank of Bahrain launches first Bitcoin Linked structured investment in GCC

The National Bank of Bahrain launches first Bitcoin Linked structured investment in GCC

The National Bank of Bahrain (NBB) has launched the GCC’s first Bitcoin-linked Structured Investment, in partnership with ARP Digital which provides crypto investment products and services such as Wealth management, coverage & OTC. The unveiling took place during a special ceremony at Fintech Forward 2024.

The investment product is designed exclusively for accredited investors to provide them the opportunity to gain exposure to Bitcoin’s (BTC) long-term growth while ensuring capital preservation. Through this structured product, accredited investors can benefit from Bitcoin’s upward performance, capped at a predefined threshold, while enjoying 100% capital protection on the downside. This offers a powerful hedge against the volatility traditionally associated with digital currencies.

Hisham AlKurdi, Group Chief Executive – Markets & Client Solutions at National Bank of Bahrain said, “We are proud to introduce this bespoke structured investment, which blends the appeal of digital asset exposure with the security of capital protection. This product underscores our focus on offering our wealth management clients innovative and secure avenues to diversify their portfolios in an evolving investment landscape. It is a testament to NBB’s continued leadership in financial innovation within the region.”

The launch of the Bitcoin-linked Structured Investment is aligned with the Bank’s strategy to enhance its product suite, particularly for wealth management clients, by providing tailored solutions that balance growth potential with risk mitigation. The product meets the demand for risk-averse investors seeking exposure to Bitcoin, while fully insulating their principal investment from market fluctuations.

Abdulla Kanoo, Co-Founder and Co-Chief Executive Officer at ARP Digital added, “Our collaboration with NBB is poised to be a game-changer in the regional market. By leveraging our expertise in digital assets and NBB’s extensive reach in the financial sector, we have created a product that introduces Bitcoin exposure within a highly secure framework. This structured investment opens new doors for investors seeking a calculated approach to digital assets.”

Dalal Buhejji, Executive Director of Business Development for Financial Services at Bahrain Economic Development Board stated, “The launch of this Bitcoin-linked Structured Investment is a prime example of the true potential of Bahrain’s robust financial services ecosystem, which provides an attractive and streamlined environment that gives rise to innovative solutions, which is key to maintaining Bahrain’s position as a leading regional fintech hub and trusted investment destination for local and global investors alike. This initiative embodies a seamless fusion of traditional financial practices and inventive blockchain-based solutions, and we are proud to witness local institutions like NBB driving cutting edge advancements and diversification to the sector.”

ARP Digital received its license from Bahrain earlier this year.