Want to put money in crypto but can’t stomach the risks? This one’s for you.
The National Bank of Bahrain (NBB) has rolled out a Bitcoin-linked investment product along with crypto firm ARP Digital, which basically taps the OG crypto coin’s growth but protects investors from big market drops.
The NBB product is a financial instrument that is structured so that even if Bitcoin’s value drops, the amount you invested in the first place remains intact. On the flip side though, that security means that you can only ride the wave to a certain point.
NBB didn’t say what the threshold would be so you may want to check that.
Bridging the gap
It wasn’t so long ago that people who invested in crypto and people who invested in TradFI were two separate tribes. Now, the big financial institutions from PayPal to Visa to … NBB… are pairing up with crypto companies to create investments that bridge the divide.
Products like these pave the way for more (crypto-trad?) tie ups in the Gulf and set the tone for the future of wealth management.
This particular product is not open to all. You have to qualify, but if you do get a pass, it is a way to dip your (TradFi?) toes into crypto without straying too far from your comfort zone. If not, it’s worth watching for more retail-accessible crypto products down the line.
Bahrain is among the first states in the Middle East to take a friendly stance toward cryptocurrencies. Crypto exchanges Binance, Crypto.com, BitOasis and CoinMENA already operate in the country.
The country’s central bank beefed up its crypto regulations last year, with new requirements to enhance consumer protection when dealing with crypto.
