Central Bank of Bahrain Greenlights Yield-Bearing Stablecoins with Immediate Effect
The Central Bank of Bahrain (CBB) has enacted new regulations permitting yield-bearing stablecoins, effective immediately. Approved issuers can now offer passive returns to clients through interest or Sharia-compliant rewards, derived solely from reserve asset investments. The MOVE follows extensive industry consultation and introduces Module SIO under Volume 6 of the CBB Rulebook.
Strict safeguards accompany the policy shift. Issuers must set yield rates at sustainable levels to avoid destabilizing the stablecoin or compromising their financial health. The framework mandates CBB approval for licensed entities seeking to offer regulated stablecoin services, with stringent requirements covering supply control, reserve management, and custody protocols.
