Bahrain FinTech Bay, the Kingdom's leading fintech hub, and Tether, the largest company in the digital asset industry, have signed a Memorandum of Understanding MoU to advance blockchain adoption, enhance digital asset education, and position Bahrain as a regional leader in blockchain innovation, supported by the Kingdom's forward-thinking stablecoin regulatory framework.
This MOU follows the recent introduction of a framework for licensing and regulating stablecoin issuers by the Central Bank of Bahrain. The framework is aimed at ensuring the safe and sound integration of stablecoins and establishes clear legal classifications for different types of stablecoins, sets out licensing requirements, reserve management rules, segregation of client assets, and real-time attestation obligations. Supporting multiple fiat currencies and allowing regulated yield models under strict supervision, it sets a new benchmark for responsible innovation in the region and ensures the safe integration of stablecoins into the financial system.
Through this collaboration, BFB 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 MoU also aims to attract international investment and talent to Bahrain, positioning the Kingdom as a hub for blockchain innovation and ethical, sustainable development.
