The Central Bank of Bahrain (CBB) has introduced a regulatory framework for the issuance and offering of stablecoins, marking the first such comprehensive framework in the Gulf Cooperation Council (GCC) region. This new module permits only fiat-collateralized stablecoins, which can be pegged to the Bahraini Dinar, the US Dollar, or other fiat currencies explicitly approved by the central bank. Algorithmic and commodity-backed stablecoins are prohibited under this framework. Issuers are required to obtain a license from the central bank and adhere to stringent prudential standards. These include maintaining reserves in high-quality liquid assets and undergoing regular external audits to ensure compliance and stability.