NBB’s Partnership with ARP Digital Creates Product with Full Capital Protection
The National Bank of Bahrain (NBB) has made headlines with the launch of the GCC’s first bitcoin-linked structured investment, developed in collaboration with ARP Digital. This innovative investment product is tailored exclusively for accredited investors, offering them a unique opportunity to gain exposure to Bitcoin’s (BTC) long-term growth while ensuring capital preservation.
This cutting-edge structured investment allows accredited investors to benefit from Bitcoin’s upward performance, which is capped at a predefined threshold, while providing 100% capital protection on the downside. This feature serves as a robust hedge against the inherent volatility typically associated with digital currencies, making it an attractive option for risk-averse investors.
Hisham AlKurdi, NBB’s Group Chief Executive for Markets & Client Solutions, expressed pride in introducing this bespoke structured investment. He stated, “We are proud to introduce this bespoke structured investment, which blends the appeal of digital asset exposure with the security of capital protection. This product underscores our focus on offering our wealth management clients innovative and secure avenues to diversify their portfolios in an evolving investment landscape.” He emphasized that this initiative reaffirms NBB’s leadership in financial innovation within the region.
The launch of the bitcoin-linked structured investment aligns with NBB’s strategy to enhance its product offerings, particularly for wealth management clients. It aims to meet the growing demand for investment solutions that balance growth potential with risk mitigation, thus providing a safe avenue for investors looking to engage with Bitcoin without exposing their principal to market fluctuations.
Abdulla Kanoo, co-founder and co-CEO of ARP Digital, highlighted the significance of this collaboration, stating, “Our collaboration with NBB is poised to be a game-changer in the regional market. By leveraging our expertise in digital assets and NBB’s extensive reach 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.”
Dalal Buhejji, Executive Director of Business Development for Financial Services at the Bahrain Economic Development Board, noted the broader implications of this launch for Bahrain’s financial services ecosystem. “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,” she said. Buhejji further emphasized that this initiative embodies a seamless fusion of traditional financial practices and inventive blockchain-based solutions, reinforcing Bahrain’s position as a leading regional fintech hub and trusted investment destination for both local and global investors.
In conclusion, the introduction of the GCC’s first bitcoin-linked structured investment not only marks a significant milestone for NBB and ARP Digital but also reflects Bahrain’s commitment to fostering innovation in the financial sector. This investment product is expected to attract a new wave of investors looking for secure and innovative ways to diversify their portfolios while engaging with the burgeoning world of digital assets.
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