Bahrain Courts Stablecoin Issuers as AlloyX Taps Fintech Hub

Why It Matters

The partnership signals heightened institutional appetite for regulated stablecoins and bolsters Bahrain’s bid to become the Middle East’s premier digital‑asset hub, reshaping competition among regional financial centres.

Key Takeaways

• AlloyX partners with Bahrain FinTech Bay for stablecoin development
• Bahrain's 2025 framework regulates stablecoin issuance and reserves
• AlloyX seeks regulatory approval before market launch
• Initiative targets institutional cross‑border payments, not retail speculation
• Bahrain competes with Gulf, Asian hubs for digital asset issuers

Pulse Analysis

Bahrain’s proactive stance on digital assets has accelerated since the Central Bank introduced its 2025 stablecoin regulatory framework. By mandating reserve transparency, governance standards, and consumer protection, the regime offers a clear compliance pathway for issuers. This regulatory clarity, combined with Bahrain FinTech Bay’s network of banks, startups, and accelerators, creates a fertile environment for testing blockchain‑based payment solutions, positioning the kingdom as a testbed for institutional‑grade stablecoins.

AlloyX’s entry into Bahrain aligns with its broader strategy to embed digital‑asset infrastructure within regulated markets. Leveraging Solowin Holdings’ capital and market reach, AlloyX aims to build a stablecoin that can settle cross‑border transactions, support tokenised financial services, and integrate with existing banking systems. By focusing on institutional clients rather than retail speculation, the firm hopes to address liquidity and reserve‑backing concerns that have plagued earlier stablecoin projects, thereby attracting banks and corporates seeking efficient, low‑cost settlement mechanisms.

The partnership also intensifies the Gulf‑Asia fintech rivalry, as jurisdictions vie to attract high‑value digital‑asset issuers. Bahrain’s blend of regulatory certainty and fintech ecosystem support could draw issuers away from larger markets like Singapore or Dubai, reshaping regional capital flows. As global regulators tighten scrutiny, jurisdictions that balance oversight with innovation—exemplified by Bahrain—are likely to capture a larger share of the emerging stablecoin market, influencing how cross‑border finance evolves over the next decade.

Bahrain Courts Stablecoin Issuers as AlloyX Taps Fintech Hub

February 16, 2026 @ 12:15 am · By Michael Wong

AlloyX, a digital‑asset infrastructure firm owned by Nasdaq‑listed Solowin Holdings, has entered into a partnership with Bahrain FinTech Bay as it moves closer to launching a regulated stablecoin in the Gulf state, positioning itself to tap growing institutional interest in compliant blockchain‑based payments.

The collaboration will allow AlloyX to work within Bahrain FinTech Bay’s ecosystem of financial institutions, fintech startups and technology providers to develop and test potential use cases for stablecoins, including cross‑border payments, settlement, and tokenised financial services.

Financial terms of the agreement were not disclosed.

The partnership comes as AlloyX is pursuing regulatory approval from Bahrain’s authorities ahead of a planned market launch.

The company did not provide a timeline, indicating that the initiative remains in a preparatory phase rather than an operational rollout.

Bahrain has emerged as one of the more active jurisdictions in the Middle East seeking to regulate digital assets and attract fintech investment.

The Central Bank of Bahrain introduced a regulatory framework for stablecoin issuance in 2025, part of broader efforts to integrate blockchain‑based financial services into the country’s banking system while maintaining oversight of reserve management, governance and consumer protection.

For AlloyX, the move reflects a strategy to anchor its expansion in regulated markets at a time when global policymakers are tightening scrutiny of stablecoins following concerns over reserve transparency, liquidity risks and their potential impact on financial stability.

The company operates across stablecoin payments, tokenisation services, digital brokerage and on‑chain financial infrastructure, targeting institutional clients looking to connect traditional financial systems with blockchain networks.

AlloyX became part of Solowin Holdings last year, giving the parent group a foothold in digital asset infrastructure as it diversifies beyond traditional financial services.

Bahrain FinTech Bay, founded in 2018 and now a subsidiary of the BENEFIT Company, serves as a national fintech hub linking regulators, banks, corporates and startups.

The organisation runs acceleration programmes and innovation initiatives designed to support early‑stage testing and commercial deployment of new financial technologies.

The partnership underscores intensifying competition among financial centres in the Gulf and Asia to attract digital asset issuers, particularly those focused on regulated stablecoins aimed at institutional and cross‑border use rather than retail speculation.