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.

UAE AI and Blockchain climate tech startup raises $3 million

UAE AI and Blockchain climate tech startup raises $3 million

UAE based AI and Blockchain enabled Coral, climate tech startup specializing in carbon emission management and offsetting solutions, has secured $3 million in funding in its recent seed round. The round was led by a group of seasoned tech investors with a cumulative 40 years of experience in the sector.

Coral offers a comprehensive, AI-driven platform that facilitates and automates carbon data collection, footprint evaluation, reporting, and offsetting in a single system, providing businesses with a streamlined solution to manage their carbon emissions. The platform also offers e-commerce businesses the ability to integrate a one-click offset integration in their checkout pages, which provides their customers the sustainable shopping experience they desire. Coral’s blockchain backend also allows full lifecycle traceability of carbon credits and real-time auditability of offsets to ensure quality and transparency.

“We’re thrilled to have completed our seed round and are grateful for the support from our investors who share our vision for a sustainable future,” said Daniele Sileri, Director of Product and Strategy at Coral. “This funding will enable us to scale our platform, expand our team, and accelerate our mission to make carbon neutrality accessible and transparent for businesses worldwide.”

Coral has already established key partnerships, including a significant collaboration with Nissan, where the company has been providing carbon footprint calculations and offsetting solutions since last year for their Formula E team. Coral’s Emissions Management System (EMS) is already live for several other clients and currently onboarding major corporate customers and ecosystem players, including partnerships with international climate organisations.

“Our platform differentiates itself by not just talking about AI and blockchain as trendy topics, but by effectively implementing them as core components of Coral’s EMS Platform that truly enhance the customer journey. We’re proud to demonstrate how these advanced technologies can be seamlessly integrated to simplify data collection, analysis, and reporting; offering real value to our users,” added Juergen Hoebarth, Director of Operations and Research. “With the carbon market expected to grow exponentially by 2030, we’re in a prime position to make a significant impact, helping organizations achieve their sustainability goals. Following our recent funding, Coral plans to expand its operations by opening a new office in Abu Dhabi and further growing our team of experts to reach a broader customer base and scale up operations.”

This comes as sustainable climate projects for the digital economy take precedence in the UAE with the launch of the Digital Energy Fund.

Rain and Bahrain launched pad backed by Sovereign Wealth fund to support MENA startups

Rain and Bahrain launched pad backed by Sovereign Wealth fund to support MENA startups

Bahrain and UAE based Rain crypto trading platform has partnered with Spring Studio’s launchpad, backed by the Sovereign wealth fund of Bahrain, Al Waha Fund of Funds, ad global venture capital firm Salica investments.

As per Rain LinkedIn post, ” We are happy to announce Rain’s partnership with Spring Studios’ Launchpad. As the first licensed crypto provider in the Middle East, Rain is committed to supporting innovative founders across the region. Founders will have direct access to our internal teams, unlocking unique opportunities in one of the fastest-growing fintech ecosystems in MENA.”

Spring Studios which caters to MENA founders, is helping to create the next wave of exceptional startups.

Spring Studios equips founders with capital, expert in-house capability, and verification from MENA’s leading investors to build startups with a greater probability of success.

This comes as Bahrain grants its fourth crypto license in the country with Crypto.com now able to offer crypto payments through its license from the Central Bank of Bahrain.

Rain was the first crypto broker to be licensed in Bahrain. It then was granted a license in the UAE from Abu Dhabi.

UAE Cypher Capital invests in AI and Blockchain SxT $20 million series A round

UAE Cypher Capital invests in AI and Blockchain SxT $20 million series A round

UAE based Cypher Capital has invested in AI and Blockchain startup Space and Time (SxT) as part of the $20 million Series A funding round.

SxT is a verifiable compute layer designed to boost the mainstream adoption of DeFi protocols and smart contracts by combining the power of AI and blockchain.

Space and Time (SxT) Labs raised $20 million in Series A funding led by Framework Ventures. CypherCapital was among several ventures capital firms that included Lightspeed Faction, Arrington Capital, and Hivemind Capital, Microsoft’s M12 Ventures, DCG, F-Prime Capital, OKX ventures, Circle Ventures and Alumni Ventures.

Vineet Budki, Managing Partner, Cypher Capital noted on Linkedin, “ Cypher Capital LLC is excited to be part of the $20M Series A funding round for the Space and Time (SxT) network, a groundbreaking project at this intersection. Among SxT innovations is a comprehensive blockchain indexing system that supports Ethereum (ETH), Bitcoin (BTC), and Polygon (MATIC) networks. The network also features a robust data warehouse that integrates and analyses both blockchain and off-chain data using SQL-based tools, along with the proof of SQL for scalable, trustless data processing.”

Other standout products include the hashtag#Space and hashtag#Time DB, API Gateway & streaming, Extreme Workloads (HTAP), and a dashboard powered by OpenAI.

To date SxT Labs has secure $50 million in funding to accelerate engineering and product development.

SxT Labs has reportedly spent the last two years building its proof-of-SQL, a zero-knowledge (ZK) circuit that provides smart contract developers and companies with the capability to verify data integrity. In decentralized finance (DeFi), for instance, the solution could be used to verify the credibility of borrowers based on real-time data or to track the performance of assets. 

The startup’s data warehouse allows both indexed blockchain data and centralized databases to be analyzed using SQL queries, thus providing a way to verify the integrity of data and operations on and offchain.

Recently Cypher Capital also participated in investment in Echelon decentralized lending platform.

The Blockchain Center in Abu Dhabi to launch $100 million Web3 fund with Gate.io ventures

The Blockchain Center in Abu Dhabi to launch $100 million Web3 fund with Gate.io ventures

The Blockchain center in Abu Dhabi, a hub for Web3 and Gate Ventures, the venture capital arm of Gate.io, have launched the Falcon Gate Ventures, a $100 million Web3 fund. This joint venture initiative takes a global stance to support Web3 builders that are committed to reshaping the world in the digital age.

As per the announcement, Gate Ventures and the Blockchain Center synergize their expertise and resources to help young talents from key regions including the USA, Asia, Europe, and the MENA region. Falcon Gate Ventures is designed to advance decentralized infrastructure and applications and accelerate the adoption of pioneering technologies.

The fund will support high-potential projects across the world, with a targeted focus on technical breakthroughs in the Middle East, Asia, the US and other key regions

Falcon Gate Ventures will work closely with international regulatory authorities to develop frameworks that both foster innovation and ensure global user protection.

“Choosing Gate Ventures as our partner for this joint fund was a natural decision for us. Gate Ventures brings a wealth of experience and a proven track record in the blockchain and digital assets space. Their deep industry expertise, combined with their innovative approach to investing, aligns perfectly with our vision at the Blockchain Center in Abu Dhabi,” said Abdulla, CEO of the Blockchain Center in Abu Dhabi. “We believe that together, we can create a powerful synergy that will drive forward our mission to support and scale high-potential blockchain projects. Gate Ventures shares our commitment to fostering cutting-edge technologies, and with their global network and insights, we are confident that this partnership will accelerate the adoption and impact of blockchain innovations, both in the UAE and internationally.”

Leveraging the extensive network and expertise of both Gate Ventures and the Blockchain Center, Falcon Gate Ventures seeks to discover and support projects poised to shape the future of blockchain technology and digital assets.

“Falcon Gate Ventures marks a significant step in our mission to advance global blockchain innovation,” said Kevin Yang, Managing Partner at Gate Ventures. “In partnership with the Blockchain Center in Abu Dhabi, we are investing in the digital future, supporting transformative ideas across continents.”

Falcon Gate Ventures is poised to drive blockchain innovation on a global scale. The venture aims to foster Innovation, accelerate the deployment of blockchain solutions by funding innovative projects and startups worldwide and support Education and Research.

Tether invests $3 million in Kuwait’s Kem fintech startup

Tether invests $3 million in Kuwait’s Kem fintech startup

Tether Operations Limited, a company in the digital assets domain, and creator of USDT stablecoin has announced a $3 million strategic investment in Kuwait based Kem app, a platform designed for money transfers and financial management.

As per the press release, the investment and collaboration will allow Kem App to introduce USDT on its platform to drive widespread adoption in the MENA region to revolutionize traditional payment systems.

The Middle East and North Africa (MENA) has the sixth largest crypto economy of any region, with an estimated $389.8 billion in on-chain value received between July 2022 and June 2023. This represents nearly 7.2% of global transaction volume during this period.

The announcement notes that with the launch of USDT on Kem app, millions of expats in countries such as Kuwait, Bahrain, Saudi Arabia, Qatar and Iraq will benefit from using USDT and accessible financial services.

The Kem app, enbles seamless cross-border transactions. Tether’s investment underscores its commitment to expanding accessibility and fostering global financial inclusion. This initiative also signifies a strategic expansion into the Middle East market, with Kem serving as a regional asset.

Paolo Ardoino, CEO of Tether, said, “This investment reinforces Tether’s commitment to promoting financial inclusion and stability. We believe that everyone should have the means to protect their families and businesses against inflation while enjoying unrestricted access to financial services. Our investment in Kem App is a testament to this belief, as the platform provides tools that simplify access to the financial system, perfectly aligning with our mission to advance financial freedom for all.”

Stablecoin Growth in MENA

In June 2024, the UAE Central Bank approved the issuance of a regulation for licensing and overseeing stablecoins and a series of policies aimed at supporting the banking, insurance, and financial services sectors. 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.

The UAE Central Bank made a clear distinction between the Dirham Payment token which can be issued by licensed payment token issuers used for any lawful purpose, and the foreign payment token issued by a Registered Foreign Payment Token Issuer which can only be used as a means of payment for purchasing virtual assets or derivatives of virtual assets.  

As reported by CoinMarketCap, the total market capitalization of stablecoins reached $174 billion as of August 2024 – with USDT (Tether), USDC (Circle), and DAI, together accounting for circa 93 percent of the market.

Tether is not the only stablecoin issuer that is trying to enhance its presence in the MENA region. In December 2023, Circle Internet Financial (Circle), and UAE based Fuze, MENA’s digital assets infrastructure provider, to expand adoption of USDC stablecoin in MENA region, after signing MOU (Memorandum of Understanding).

Circle, the issuer of the US-dollar backed stablecoin USDC, will work with Fuze to expand the adoption of USDC amongst new customers in the region, such as banks, fintechs, traditional enterprises and Web3 firms. The scope of the agreement covers the Middle East, Africa and Turkey, paving the way for the expanded use of USDC in these regions and the piloting of new use cases relevant to these markets.

Tether’s investment and collaboration is also setting the stage for Kem to enhance its offerings and better serve millions of underserved businesses throughout the Middle East. By incorporating cryptocurrencies into its platform, Kem aims to replicate the success of financial platforms offering cryptocurrencies in other markets, driving mass adoption and fostering a more inclusive banking landscape in the Gulf region.

Qatar Rasmal Ventures to launch $100 million tech fund

Qatar Rasmal Ventures to launch $100 million tech fund

Qatar based Rasmal Ventures, the first independent venture capital company within QFC authority, licensed to manage exempt funds domiciled in QFC, has announced the launch of its upcoming Rasmal $100 million Fund I, with the support of key Qatari private investors and institutions. For its first closing of over USD $30 million, it includes a prestigious institutional investor, family offices and individual high net worth investors from across Qatar and the rest of the world.

As per the release, the team is working with QFCRA to incorporate the fund, and a first closing is expected to be announced in Q4 2023. The fund will make up to 25 equity investments in Qatari start-ups and scale-ups affording outstanding growth potential as well as regional (MENA) and selective international technology investment opportunities at Pre-Series A, Series A, Series B stages. 

The newly launched Fund manager aims to target high performing startups in fast-growing technology sectors. The fund will have a generalist tech approach across all sectors, but will also specialize in verticals such as climate tech and energy tech, supply chain logistics, fintech, B2B Saas Software and Artificial Intelligence (AI).

Founded by five seasoned venture capitalists, Rasmal Ventures is licensed to manage exempt funds domiciled in QFC as well as provide advisory services. Two of them, Alexander Wiedmer and Angus Paterson, were previously partners of Iris Capital and of a GCC fund that was the first institutional investor in Careem among other successful investments. Both have 20+ years of venture capital experience and 10+ years’ experience of VC investing in the GCC. They are joined by the founding partner of Doha Tech Angels and former executive at Ooredoo and Kahramaa Dr Shaikha Al Jabir; ex-asset manager for Qatar Energy and M&A Advisor at PwC Marc Bourland, and Soumaya Ben Beya Dridje, who has VC, fund investment and entrepreneurship experience in Silicon Valley, Europe and North Africa.

Dr Shaikha Al Jabir, Partner at Rasmal Ventures, said, “MENA has seen a dynamic and evolving venture capital landscape in recent years. According to a report by MAGNiTT, in 2022 alone the amount of funding in the region reached $3.2 billion, with 627 registered deals and a remarkable uptick in exits.    For our team, this offers an attractive opportunity to establish our base in a thriving market within a regulated environment. We strongly believe that Qatar’s stable economic outlook and well-regulated infrastructure will appeal to Qatar-based, as well as international, investors.”

On his side, Yousuf Mohamed Al-Jaida, Chief Executive Officer, QFC, said, “We are delighted to welcome Rasmal Ventures LLC to the QFC platform, yet another significant addition to our growing community. At the QFC, we remain committed to providing an exceptional and attractive business environment for startups to grow their businesses in Qatar. As an integral part of Qatar’s strategic initiative to build a robust economy, we aim to foster a thriving business ecosystem that drives innovation and accelerates technological advancement in the country. We are confident that Rasmal Ventures LLC will contribute to further the economic development of the region.”

Azimut invests a total of $156 million in Alps Blockchain to expand operations in Oman and other markets

Azimut invests a total of $156 million in Alps Blockchain to expand operations in Oman and other markets

Azimut, an independent, global group in asset management, wealth management, investment banking and fintech, has successfully completed a new club deal to invest in Alps Blockchain totaling $156 million. Alps Blockchain is one of Europe’s leading companies and a leader in Italy in the production of computational power for blockchain and digital mining with operations in Oman.

This new €105 million ( $113 million) investment by Azimut in Alps Blockchain, follows a previous round of €40 million ($43 million) in 2023, confirming the confidence and involvement of private investors in the growth of this innovative company. Total club deal investments now stand at $156 million.

Azimut’s investment was made through Azimut Direct Investment Alps Blockchain II SCSp, a dedicated Luxembourg vehicle that invested in a 5-year guaranteed bond with the option of early redemption by Alps Blockchain. This transaction allowed around 1,000 customers, served by the Group’s network of financial advisors and wealth managers in Italy, to gain exposure to the growth of the blockchain sector.

Alps Blockchain is an Italian company that builds and operates mining farms with the aim of contributing to the development of new technologies and supporting the evolution of the energy sector, combining innovation and efficiency. In the last three years the company has quintupled the number of mining machines installed in its planned sites globally from 2,500 to over 15,000. This increase has enabled the company to reach a total energy capacity of 50 MW and more than 2 EH/s (exahash per second) of computing power produced by June 2024.

Alps Blockchain’s positive trend is also reflected in its financial results. Revenues increased from €697,000 in 2020 to €17.3 million in 2022. In 2023, thanks in part to Azimut’s first investment round, revenues reached €43.6 million, an increase of around 140% compared to the previous year, which, with a positive EBITDA.

The funds raised will be used to support Alps Blockchain’s growth and internationalization path, with a focus on consolidating and implementing its existing operations and considering expansion into new markets to further strengthen its global position.

From Italy, the company has already established operations in countries such as Paraguay and Ecuador, where the completed mining farms use hydroelectric power. Alps Blockchain actively supports the energy sector not only by focusing on hydropower, but also by exploring new sources and projects to promote the energy transition.

Among the key markets for future growth is Oman, where the company is already present with a state-of-the-art mining farm within the Green Data City technology hub. The strategic focus is also on North America, a major destination for the mining industry and attractive for new expansion opportunities.

Giorgio Medda, CEO and Global Head of Asset Management & Fintech of the Azimut Group, commented, “We are thrilled to strengthen our relationship with Alps Blockchain, whose objective is to make mining more sustainable, and to offer our customers the opportunity to participate in the growth of an all-Italian excellence that is rapidly establishing itself around the world. This new transaction is part of Azimut’s broader commitment to promoting a global and sustainable energy transition through innovative investment solutions in private markets. A commitment that from 2022 to date counts investments of over €350 million. Our vision is that asset management can increasingly play a crucial role in combining efficient capital allocation with building a more sustainable future’.

Francesco Buffa, CEO of Alps Blockchain, stated, ‘At Alps Blockchain we are committed to shaping projects that foster the synergy between new technologies and the world of energy, generating a positive impact in both sectors. This new investment is an extraordinary confirmation of the confidence in our work and an essential support for the near future. On the sixth anniversary of the company’s establishment, which was July 20th, we are enthusiastically inaugurating a new chapter in its history dedicated to the pursuit of ambitious growth targets.

Francesca Failoni, CFO of Alps Blockchain, added, “The increase in resources will allow us to contribute even more substantially to the blockchain ecosystem, fostering the development of solid and sustainable projects over time. Thanks to this financial transaction, we will not only be able to increase and make our existing sites more efficient, but also invest in the construction of new facilities, aiming to quadruple the production capacity of computing power in the service of this technology by the first quarter of 2025.”

UAE Cypher Capital leads $15 million investment in ZAP protocol

UAE Cypher Capital leads $15 million investment in ZAP protocol

UAE based Cypher Capital leads $15 million investment in ZAP, a powered token distribution protocol built on the Ethereum Layer 2 network, Blast, allowing it to reach a token valuation of $100 million.

As per a post by Vineet Budki, Managing Partner and CEO of Cypher Capital, “ ZAP features a questing and airdrops protocol, a no-code token launcher, and curated launches via ZAP Labs. The token launchpad and no-code token offer users access to venture-backed projects, giving them more options to fully utilize their on-chain activity. ZAP’s developments aim to advance the vision of democratizing access to early-stage investments and creating a fairer crypto space where participants can engage on a level playing field.”

He adds, that Cypher Capital is proud to invest in these innovations, which will address key issues in the airdrop and launchpad space.

As per the ZAP X post, “ZAP is thrilled to announce a successful $15M funding round, led by  Rarestone Capital, Cypher Capital and Sharding Capital with support from Presto Labs, Auros Global, and industry angels including LawMaster, Chelsea Jiang of ForesightVen, LucaNetz  and many more, including LayerZero Labs.”

According to ZAP, they are committed to building a comprehensive suite of products to make them even more feature rich offering the user experiences found only on the smoothest web2 platforms.

Labs, ZAP’s offerings will be deeper and smoother with more options and better experiences.

ZAP noted on X that with the funding, they will continue to develop innovations and solve key issues in airdrop and launchpad space, as well as grow to new locations and broaden their reach to different blockchain ecosystems.

In addition ZAP noted, “These new developments, and our ongoing ones, all serve to further our vision of democratizing access to early-stage investments, creating a fairer crypto space, and ensuring that all participants can engage on a level playing field.”

pseudonymous founder and CEO Francis told The Block, “ The funding was raised in three recent rounds $900,000 seed last December, $2.1 million private round last month and $12.1 million in an ongoing “vault sale” The seed and private rounds were structured as simple agreements for future tokens (SAFTs).”

“The vault sale will end when we conduct our token generation event in the next few months, Francis said. “If all vaults sell out, we will end up raising a total of $50 million.”

ZAP was valued at $15 million at the time of its seed round, then its valuation increased to $30 million during the private token round and is now valued at around $100 million, Francis said. “Our ongoing vault sale puts our implied fully diluted token valuation at around $100 million,” Francis said.

ZAP recently launched the “Blast Gigadrops” campaign, rewarding users for both their social and on-chain interactions with over 20 Blast ecosystem projects. The campaign boasts a prize pool of around $1 million and has partnerships with projects including Thruster, Particle and MetaStreet.

While ZAP’s token distribution protocol is currently built on Blast, it looks to expand to more blockchains, starting with Base. ZAP is also building a “no-code” token launcher and a token launchpad to offer users access to venture-capital-backed projects.

Francis told the Block that already  12 people are currently working for ZAP in London and the United Arab Emirates, and he is looking to hire a couple more for the engineering function.

Tokinvest has raised half a million dollars

Tokinvest has raised half a million dollars

Tokinvest, a marketplace for real-world asset tokenization, has raised half a million dollars ($500,000) in pre-seed funding from several strategic investors. This comes weeks after it received preliminary approval for a crypto broker license in Dubai UAE.

Tokinvest is a marketplace that connects real-world asset issuers with investors globally. The advanced platform is noted to simplify the investment process by creating virtual tokens representing rights to assets and providing comprehensive lifecycle services from ideation to trading to asset servicing.

“We believe in Tokinvest’s vision of setting standards in the real-world tokenisation industry. Their approach not only meets the highest legal and compliance levels but also aligns with current demand by providing accessibility to the most desirable assets for all investors. We are thrilled to be part of this exciting growth period for the company,” said Michael Ourabah, CEO at BSO and one of Tokinvest’s strategic investors.

As per the press release, the funds will be used to enhance the platform’s technological infrastructure, expand the team, and accelerate market penetration.

Scott Thiel, CEO of Tokinvest, stated, “We are immensely grateful for the trust and support from our early investors. This funding fuels our technological and operational development and solidifies our strategy to lead in the real-world asset tokenization space. We are excited about the opportunities that lie ahead and are keenly focused on launching our marketplace later this year.”

Tokinvest is seeking to commence other fund raising rounds to scale their operations.