The Daily Tribune, 21 October 2025: The Central Bank of Bahrain (CBB) has implemented new regulations for cash-backed stablecoins through its Stablecoin Issuance and Offering Module, establishing strict requirements for stablecoin operators, including mandatory 1:1 cash reserves and full liquidity provisions.

Under the new rules, stablecoins must be backed by recognised central bank currencies, such as the US dollar or Bahraini dinar, and will be subject to CBB supervision. The regulations also set comprehensive standards for governance, compliance, and financial disclosure, with direct redemption requirements for token holders.

The regulatory development comes as Bahrain engages in discussions with more than 50 financial and investment firms, many specialising in cryptocurrency operations. Earlier this year, the central bank granted its first Category 3 licence for digital asset trading, enabling services including brokerage, custody, storage, and crypto infrastructure.

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