Ripple signed an agreement with Bahrain FinTech Bay to bring its digital asset network to Bahrain and to push local use of RLUSD. The step places the token inside a clear rule set and touches banks, fintechs and payment builders across MENA. Bahrain’s stablecoin framework, in force since July 2025, creates a regulated path for RLUSD into local banking.
Bahrain allows fiat backed stablecoins under the Central Bank of Bahrain Issuance and Offer Framework for Stablecoins, effective since July 2025. This rule gives RLUSD a legal path into local banks, aligning the token with supervisory expectations on issuance and oversight.
Company and ecosystem leaders framed the deal as a bridge between global tech and local regulation. Reece Merrick, Ripple’s Middle East or Africa Managing Director, said Bahrain adopted blockchain early and wrote rules for it, while Suzy Al Zeerah, COO of Bahrain FinTech Bay, called the agreement a link between global technology and local know-how.
RLUSD profile and operational impact
RLUSD is Ripple’s stablecoin backed one-to-one by US dollars, short term Treasuries and cash equivalents. The New York Department of Financial Services approved it on 17 December 2024, and from 2 April 2025 the token sits inside Ripple Payments for cross border transfers. BNY Mellon holds the reserves and has done so since July 2025, according to company papers.
Ripple states that RLUSD cuts delay and cost in a $31.6 trillion global payments market. Pilots already run, such as a climate insurance escrow in Kenya that pays out in RLUSD, signaling early real-world tests tied to financial inclusion and risk transfer use cases.
The Bahrain launch has four direct results: the SIO licence speeds onboarding for local banks and payment service providers; regional clients gain a tool for treasury, transfers and asset tokenization; heavy reliance on one custodian and on foreign rules forces tight KYC, AML and reserve audits; private stablecoins now move faster than planned central bank digital currencies, though they remain under watch.
Ripple will next widen RLUSD reach to Japan through SBI in 2026, and the Bahrain node adds a regulated hub to the regional plan, extending the network’s footprint across strategic markets.
The Bahrain agreement gives RLUSD regulated rails into local finance while offering regional clients new treasury and cross-border tools. In practice, this means faster onboarding for institutions, clearer compliance guardrails and a stepping stone for Ripple’s wider rollout, including the planned Japan expansion in 2026.
