CBB sets stablecoin rules for cash-backed coins

TDT | Manama

Email: mail@newsofbahrain.com

Bahrain’s domestic fintech market is forecast to grow at about 17.2 per cent a year, rising from an estimated $1.4 billion in 2025 to roughly $5.0 billion by 2033, according to Data Cube Research.

As Gulf markets move to digitise finance, Bahrain is in advanced talks with dozens of digital-asset managers, according to Financial News London.

The report says the kingdom is speaking with more than 50 financial and investment firms, many in crypto.

Regulation is moving in step.

In July 2025 the Central Bank of Bahrain introduced the Stablecoin Issuance and Offering (SIO) Module, a rulebook for cash-backed stablecoins.

It requires a 1:1 cash reserve for each coin, full liquidity, direct redemption, and firm standards on governance, compliance and financial disclosure.

Coins must be backed by currencies from recognised central banks, such as the US dollar or the Bahraini dinar, and will fall under CBB oversight.

Earlier, in January 2025, the CBB granted a Category 3 licence to Fasset Financial Services W.L.L. to offer digital-asset trading, including brokerage, custody and storage, and crypto infrastructure.

Regional research points to growth. PS Market Research values the GCC fintech market at about $10.5 billion in 2025, with a forecast of around $29.8 billion by 2032.

IMARC Group puts the region’s digital payments market at about US$2.4 billion in 2024, rising to roughly US$6.9 billion by 2033.