In a move to offer accredited investors the ability to capitalise on Bitcoin’s long-term growth while ensuring capital preservation, the National Bank of Bahrain (NBB) has launched a new Bitcoin-linked investment product, developed in partnership with digital asset financial services firm ARP Digital.
During an unveiling at Fintech Forward 2024, an industry fintech event held in Riyadh, Saudi Arabia, the National Bank of Bahrain revealed that through its new Bitcoin-linked structured product, accredited investors can benefit from Bitcoin’s upward performance, capped at a predefined threshold, while enjoying 100 per cent capital protection on the downside.
Through this move, it aims to offer a hedge against the volatility traditionally associated with digital currencies.
“We are proud to introduce this bespoke structured investment, which blends the appeal of digital asset exposure with the security of capital protection,” explained Hisham AlKurdi, group chief executive of markets and client solutions at NBB. “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.”
It also says that this announcement marks a ‘pioneering’ step for the financial sector of Bahrain and the wider region.
The launch of the Bitcoin-linked structured investment aligns 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.
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Abdulla Kanoo, co-founder and co-chief executive officer at ARP Digital, also added: “By leveraging our expertise in digital assets and extensive reach of the National Bank of Bahrain 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.”
NBB says that the Bitcoin-linked Structured Investment highlights its role as a pioneer in digital asset investment and highlights its forward-thinking approach to aligning traditional wealth management practices with emerging trends in global finance.
Dalal Buhejji, executive director of business development for financial services at Bahrain Economic Development Board, also said: “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.”
