The National Bank of Bahrain (NBB) has introduced a Bitcoin-linked Structured Investment for accredited investors – the first offering of a kind in the Cooperation Council for the Arab States of the Gulf (GCC) region.
NBB launched the crypto-linked investment product in cooperation with ARP Digital, which specializes in OTC trading, wealth management, and asset management.
The announcement was made at a special ceremony at the Fintech Forward 2024 event, which was held at Bahrain Exhibition World.
The new investment product enables bank clients to gain exposure to Bitcoin (BTC) without suffering from the volatility typical for the crypto market. Bitcoin-linked structured product has the token’s performance capped at a predefined threshold and offers 100% capital protection.
The launch goes in line with the Bank’s general strategy to expand its product suite, enabling wealth management clients to diversify their portfolios. The institution particularly focuses on providing tailored investment solutions that balance growth potential with risk mitigation.
The new Bitcoin-linked offering targets risk-averse investors seeking exposure to Bitcoin by cushioning their principal investment from market fluctuations.
Bahrain encourages the adoption of innovative financial technologies with a proactive regulatory approach and a crypto-friendly environment. Crypto-asset companies currently comprise over 15% of Bahrain’s regulatory sandbox that allows fintech businesses to test their products and services in a controlled environment with regulatory oversight.
At the same time, customers eager to invest in cryptocurrencies typically face high risks of market volatility. The National Bank of Bahrain (NBB) mitigates those risks with a Bitcoin-linked Structured Investment, offering an innovative and safe way to diversify investors’ portfolios.
