In a collaboration facilitated by Bahrain Fintech Bay, the National Bank of Bahrain (NBB), Bahrain Islamic Bank (BisB), Bank of Bahrain and Kuwait (BBK), and Benefit successfully executed instant payments using digital commercial bank money between clients on Google Cloud Universal Ledger (GCUL).
Supported by the Bahrain Economic Development Board, the pilot marks a significant step in the Kingdom’s efforts to modernise its financial infrastructure.
High-value transactions in Bahraini Dinar between Aluminium Bahrain (Alba) and Bapco Energies were processed and settled instantly in a controlled environment.
The trial demonstrated potential benefits such as reduced transaction costs, enhanced transparency and security, and 24/7 operational capability without settlement delays.
GCUL is a distributed ledger platform designed for financial services that enables real-time transactions, simplifies account management, and integrates with existing banking systems.
It allows institutions to build new client services on Google Cloud’s infrastructure without affecting their deposits or lending operations.
The pilot lays the groundwork for expanding the initiative to more banks and financial institutions in Bahrain, with plans to enable cross-border and multi-currency transactions in the next phase.
Future development will also focus on point-of-sale integrations to extend real-time payments to consumers.
According to Ghassan Kosta, Regional General Manager, Google Cloud Qatar, Oman, Bahrain, and Iraq:
“This pilot in Bahrain is a landmark achievement. Through the implementation of Google Cloud Universal Ledger, we are supporting the country’s vision for digital transformation. The foundational use case of a BHD transfer between three banks demonstrates the potential for 24/7 settlement while reducing costs and operational risks.”
Ashish Majmundar, Director, Global Head of FSI Practice at Google Cloud, added:
“This pilot represents a milestone for the future of global payments. It establishes a model for an instant, programmable Bahraini Dinar and provides a scalable platform for multi-currency transactions across the world.”
Featured image credit: Bahrain Fintech Bay
