National Bank of Bahrain (NBB) has entered a partnership with Partior to explore acting as a Bahraini dinar settlement bank on Partior’s blockchain network, the bank said.
Partior runs a multi-bank blockchain settlement network that is already live in production.
The partnership sets up a framework for the two firms to evaluate the proposed operating model, implementation requirements and technical feasibility.
The assessment will also consider regulatory requirements as the parties decide how such a model could work within Bahrain’s financial services sector.
The agreement does not commit either side to launch the service. Neither company gave a timeline or financial terms.
Vineet Munot, group head of transaction banking at NBB, said the way financial institutions settle money across markets continues to evolve.
“Our engagement with Partior allows us to assess how NBB’s local market capabilities could support Bahraini Dinar settlement within an emerging digital infrastructure,” Munot said.
He said the bank would approach the opportunity “with the appropriate technical, operational and regulatory considerations.”
Humphrey Valenbreder, chief executive of Partior, said expanding the range of currencies on new settlement platforms is important for interoperability between financial markets.
“Our work with NBB gives us an avenue to assess how Bahraini Dinar settlement could be incorporated into Partior’s network, building on our growing presence across the GCC,” Valenbreder said.
A settlement bank holds and moves a specific currency for other participants on a network. Adding the Bahraini dinar would let banks on Partior settle payments in that currency.
NBB said the agreement reflects its focus on building its transaction banking business through selected partnerships and new financial infrastructure.
The bank said it aims to strengthen its international connectivity by exploring new approaches to clearing and settlement.
The move follows another payments tie-up by the bank. NBB has also partnered with TerraPay to expand its cross-border payout reach through TerraPay’s network.
