MANAMA, Bahrain, Feb 17, 2026, 14:13 (GMT+3)
- AlloyX plans to team up with Bahrain FinTech Bay to build regulated stablecoin applications before its intended rollout, which still needs approval.
- The Central Bank of Bahrain allows licensed issuers to launch fiat-backed stablecoins tied to a single currency, under regulations introduced in 2025.
- Japan’s fintech sector is set to more than triple by 2034, according to IMARC Group, as digital payments and mobile banking continue to expand.
AlloyX has teamed up with Bahrain FinTech Bay, aiming to accelerate efforts around “regulated stablecoin” use cases, with the digital-asset player preparing for a debut in the Gulf nation.
The timing is crucial as stablecoins—crypto tokens meant to maintain a fixed value, typically linked to currencies like the U.S. dollar—are shifting beyond trading desks and creeping into daily payments. Regulators are pushing for stricter oversight before that shift picks up speed.
Bahrain has branded itself as a regional fintech sandbox, courting issuers and infrastructure firms willing to operate under its licensing and regulatory regime. Over in Japan, the fintech sector’s rapid expansion is still drawing in global players hunting for fresh routes.
AlloyX plans to tap into Bahrain FinTech Bay’s network as it digs into “next generation” stablecoin applications, teaming up with regional and global payments and tech players. “We’re committed to building compliant and scalable stablecoin solutions in Bahrain,” said Thomas Zhu, co-founder and CEO. Managing director Xavier George described the partnership as “a strong foundation for future innovations.” (GlobeNewswire)
Bahrain’s regulators aren’t starting from scratch here. Back in July, the Central Bank of Bahrain announced it would begin licensing and supervising stablecoin issuers, opening the door to single-currency tokens backed by the Bahraini dinar, the U.S. dollar, or other fiat currencies it signs off on. Mohamed Al Sadek, the executive director, described the framework as a move to “enhance Bahrain’s position as a leading financial hub.” Another top official, Ali Haroon AlAamer, emphasized issuers will face “comprehensive oversight.” (CBB)
AlloyX, part of Solowin Holdings—traded on Nasdaq—describes its business as stablecoin payments, tokenisation (that’s the process of converting an asset or claim into a digital token tracked on a blockchain), and a mix of other “on-chain” infrastructure. The firm’s focus: moving value across networks instead of using bank rails.
Bahrain FinTech Bay, launched in 2018, describes itself as an ecosystem builder, operating labs and acceleration programs while connecting banks, startups, and government entities. According to the AlloyX statement, it’s a subsidiary of The BENEFIT Company.
Stablecoins are everywhere. Heavyweights like Tether and Circle still hold the lion’s share, but fresh projects keep popping up, chasing banks and payment companies with pitches about regulatory compliance. Bahrain, Dubai, and Abu Dhabi—Gulf financial hubs—are all fighting for a slice of that action.
IMARC Group pegs Japan’s fintech market at $10.5 billion for 2025, projecting a jump to $32.6 billion by 2034. That points to a 13% compound growth rate each year from 2026 through 2034. The group attributes the surge mainly to government efforts to promote cashless payments and the growing appetite for digital financial services. (IMARC Group)
El-Balad, in a Feb. 17 analysis, highlighted comparable trends in Japan, noting increased adoption of mobile wallets, expanded use of AI in fraud detection, and a push for “open banking”—where third-party apps get access to bank data if customers approve—all seen as investment hot spots. (El Balad)
Still, everything in Bahrain depends on getting the green light—and on trust. Licensing holdups, tighter rules for reserves and disclosure, or even doubts over stablecoin backing risk stalling adoption and undermining the push toward institutional clients.
