XRP News Today: Bahrain Uses Ripple Pact to Cement Digital Finance Hub Status

Ripple, the digital asset infrastructure provider, has announced a strategic partnership with Bahrain Fintech Bay (BFB) to expand its Ripple USD (RLUSD) stablecoin pilots and blockchain-based payment solutions across the Gulf region. The collaboration aims to leverage Bahrain's progressive regulatory framework to advance digital asset adoption, with a focus on cross-border payments, tokenization, and institutional-grade custody solutions. This initiative builds on Ripple's existing Dubai Financial Services Authority (DFSA) license, awarded in March 2025, and underscores growing demand from Gulf institutions for compliant digital asset technologies.

The partnership will include pilot projects, educational programs, and accelerator initiatives to integrate RLUSD into Bahrain's financial ecosystem. Ripple and BFB plan to test the stablecoin in controlled environments with local financial institutions and fintechs, targeting use cases such as cross-border settlements and tokenized asset management. Suzy Al Zeerah, COO of Bahrain Fintech Bay, emphasized the initiative's role in bridging global innovators with regional markets, stating it aligns with Bahrain's ambition to become a digital finance hub.

Ripple's RLUSD, a U.S. dollar-backed stablecoin designed for enterprise use, has already gained traction in Dubai and is set to expand further in Bahrain. The stablecoin's rollout will be supported by the Central Bank of Bahrain's July 2025 regulatory framework, which permits licensed entities to issue fiat-backed tokens in U.S. dollars or Bahraini dinar. The framework also mandates Sharia compliance for Islamic finance-aligned stablecoins, a feature highlighted by Fitch Ratings as a differentiator for Bahrain in the Gulf.

Reece Merrick, Ripple's Managing Director for the Middle East and Africa, noted that Bahrain's early adoption of blockchain technology positions it as a key partner for Ripple's global expansion. The company plans to introduce RLUSD custody solutions to Bahraini institutions, building on its partnership with the Bank of New York Mellon (BNY) to secure RLUSD reserves. This collaboration with BNY, announced in July 2025, underscores Ripple's commitment to institutional-grade security and transparency, with reserves held in a 1:1 ratio against high-quality liquid assets.

The partnership also aligns with broader regional trends in digital asset adoption. Bahrain's regulatory environment, which includes over 60 global licenses for Ripple, facilitates innovation while maintaining compliance standards. The Central Bank of Bahrain's 2023 amendments to its crypto-asset module further solidified the country's reputation as a leader in digital finance, introducing safeguards for client assets and clarifying definitions for asset and utility tokens.

Ripple's expansion into Bahrain is part of a wider strategy to establish RLUSD as a cross-border payment tool. The stablecoin has been deployed in Africa through partnerships with Chipper Cash and Yellow Card, and in Europe via Swiss-regulated AMINA Bank. With its focus on institutional clients, RLUSD aims to reduce settlement times and costs compared to traditional systems, a goal supported by pilot projects in Bahrain's fintech ecosystem.

The collaboration will also feature participation in events like Fintech Forward 2025, where industry leaders will discuss the future of digital finance. By fostering dialogue between regulators, banks, and fintech firms, Ripple and BFB aim to accelerate the development of blockchain-based solutions tailored to Gulf markets.

Source: [1] Coindesk (https://www.coindesk.com/markets/2025/10/09/ripple-expands-into-bahrain-in-boost-for-rlusd)

[2] Invezz (https://invezz.com/news/2025/10/09/ripple-to-launch-rlusd-stablecoin-in-bahrain/)

[3] Ripple Press (https://ripple.com/ripple-press/ripple-expands-into-the-kingdom-of-bahrain-through-strategic-partnership-with-bahrain-fintech-bay/)

[4] COINOTAG (https://en.coinotag.com/ripple-may-extend-rlusd-pilots-across-gulf-through-partnership-with-bahrain-fintech-bay/)

[8] Gulf News (https://gulfnews.com/your-money/cryptocurrency/bahrain-new-stablecoin-standard-to-fuel-islamic-fintech-gcc-crypto-growth-1.500189896)

[10] Ripple Press (https://ripple.com/ripple-press/ripple-selects-bny-to-custody-ripple-usd-reserves/)