SOLOWIN HOLDINGS' AX Coin and BBK Sign MOU to Explore Regulated Stablecoin Infrastructure in Bahrain

SOLOWIN HOLDINGS (Nasdaq: AXG) said its regulated stablecoin issuer, AX Coin Bahrain B.S.C. Closed (“AX Coin”), has signed a non‑binding Memorandum of Understanding (MOU) with Bank of Bahrain and Kuwait (BBK) to explore the development of regulated stablecoin infrastructure in Bahrain. The agreement will assess use cases across institutional payments, treasury operations and cross‑border settlement, combining BBK’s retail and corporate banking expertise with AX Coin’s licensed digital asset infrastructure. The move comes amid market projections that up to US$1 trillion could migrate from emerging market bank deposits into stablecoins by 2028.

“This partnership marks a significant milestone in the evolution of regulated digital finance, particularly as the global banking sector moves toward new models that leverage the potential of stablecoins to enhance institutional payments and financial services,” said Mr. Xavier George, Managing Director of AlloyX Limited and CEO of AX Coin. “Our collaboration with BBK highlights the value of bringing together established banking expertise and regulated digital infrastructure to build solutions that are more efficient, transparent, and scalable. It also reinforces Bahrain’s role as an advanced hub for financial innovation and a platform capable of supporting the next generation of institutional payment infrastructure by connecting traditional banking with regulated blockchain technology.”

Under the non‑binding MOU, AX Coin and BBK will evaluate a range of regulated stablecoin applications aimed at banks, financial institutions, fintechs and corporate clients. Key areas of interest include improving transaction speed and liquidity efficiency for institutional payments, enhancing treasury management operations, and lowering costs for cross‑border remittances and settlement. The collaboration explicitly targets secure, compliant and scalable implementations, reflecting both parties’ emphasis on trust, security and regulatory compliance as they explore integrating regulated blockchain technology with traditional banking systems.

Context and strategic rationale

SOLOWIN HOLDINGS positions AX Coin as a licensed issuer focused on regulated stablecoin products. BBK, described in the MOU as a leading retail and corporate bank in the Kingdom of Bahrain, brings local market knowledge and established banking relationships. The MOU is non‑binding, meaning the scope and timeline of any operational rollout remain subject to further assessment and formal agreements.

• Primary target use cases: institutional payments, treasury operations, cross‑border settlement and remittances.
• Partnership rationale: combine banking expertise (BBK) with regulated digital asset infrastructure (AX Coin).
• Market driver: projections that up to US$1 trillion could shift into stablecoins from emerging market deposits by 2028, fueling institutional interest.

“At Bank of Bahrain and Kuwait, we continue to explore emerging financial technologies within clear regulatory frameworks, with a focus on solutions that respond to the evolving needs of financial institutions and corporate clients,” said Mr. Adnan Al Ameer, Head of Financial Institutions Group within Wholesale Banking at BBK. “This collaboration with AX Coin will allow us to assess how regulated stablecoins can support new institutional banking models.”

Outlook

The MOU signals an exploratory but strategic step toward integrating regulated stablecoins into institutional banking in Bahrain. If the parties progress to concrete pilots or commercial deployments, banks and corporate treasuries could gain faster settlement rails and potentially lower cross‑border costs. However, the non‑binding nature of the agreement leaves timelines and commitments open; any future implementation will depend on regulatory approvals, technical integration and the completion of pilot validation. Both organisations stress compliance and security as prerequisites for scaling solutions beyond proof‑of‑concept stages.