According to CoinDesk, ARP Digital has been granted a category-3 license from the Central Bank of Bahrain. This makes it the only over-the-counter (OTC) service provider in the country specializing in digital asset structured products. The demand for structured products has seen a significant increase from institutional investors following the approval of spot bitcoin ETFs by the U.S. Securities and Exchange Commission earlier this year.
ARP Digital, a digital asset services firm with a former Goldman Sachs partner among its co-founders, will now be able to operate in the Middle Eastern country. The firm will provide services such as crypto trading, custody, and portfolio management services to its customers. The firm is the only OTC service provider focused on structured products regulated by Bahrain's Central Bank.
Structured products, which are popular in traditional finance, are typically designed for investors who require customized investment products. These often include derivatives and other complex financial structures. ARP Digital, based in the Middle East and North Africa (MENA), stated that its products are designed to meet the sophisticated needs of high-net-worth, accredited, institutional, and family office investors globally. The firm will cater to both traditional finance and crypto-native investors.
The management team of ARP Digital includes co-founder Yusuf Alireza, who spent 20 years at Goldman Sachs and was the first-ever Arab partner in the Wall Street firm's history. The other co-founders, Abdulla Kanoo and Abdulaziz Kanoo, were former regional directors for Amber Group’s crypto trading firm business in MENA.
The structured products industry in the digital assets market has not gained as much market share as traditional finance. However, there is a growing demand from sophisticated investors for these types of financial products, especially after the approval of spot bitcoin ETFs, according to Abdulla Kanoo of ARP Digital. Bahrain has quickly become a crypto hub in the MENA region due to its well-regulated ecosystem for both local and foreign digital-asset firms.