Bahrain FinTech Bay, the Kingdom’s leading fintech hub, and Tether, the largest company in the digital asset industry, signed a Memorandum of Understanding (MoU) to advance blockchain adoption, enhance digital asset education, and position Bahrain as a regional leader in blockchain innovation.
The collaboration is supported by the Kingdom’s new, forward-thinking stablecoin regulatory framework. This framework, recently introduced by the Central Bank of Bahrain, is aimed at ensuring the safe and sound integration of stablecoins into the financial system. It establishes clear legal classifications for different types of stablecoins and sets out detailed requirements for licensing, reserve management, asset segregation, and real-time attestation obligations.
Accelerating education and innovation
Through this collaboration, Bahrain FinTech Bay and Tether will work to accelerate the use of blockchain technologies by promoting education, supporting community engagement, and encouraging greater cooperation between public and private sector stakeholders. The partnership also aims to attract international investment and talent to Bahrain, positioning the Kingdom as a hub for blockchain innovation and ethical development.
The initiative will focus on expanding awareness and knowledge across key areas, including stablecoins, tokenisation, digital assets, artificial intelligence, and decentralised technologies. It will also drive the development of new use cases that align with Bahrain’s robust regulatory framework.
Strengthening Bahrain’s digital ecosystem
The partnership combines Bahrain FinTech Bay’s ecosystem-building expertise with Tether’s global reach. The stated goal is to highlight the efficiencies and benefits of digital assets in a compliant manner, contributing to foreign direct investment and talent development in the region.
The MoU represents a significant step towards broader blockchain adoption and the development of distributed ledger technologies in the region. The partners stated the initiative will leverage Bahrain’s regulatory leadership to lay the groundwork for a sustainable, innovation-driven digital ecosystem in the Kingdom.
