On June 1, 2026, the Central Bank of Bahrain issued the country’s first stablecoin issuer license to Huaying Group (stock code: AXG), a Nasdaq-listed company.
Its core highlight is that for the first time, it has realized the deep integration of the three major systems of sovereign central bank supervision, profit sharing mechanism and Shariah compliance. This feature is a competitive advantage that mainstream stablecoins such as USDT, USDC, and PYUSD do not yet have.
The implementation of this license marks that the Middle East has embarked on a new stablecoin development path that is different from the European and American systems. Its underlying logic stems from the region’s unique economic structure pain points and unique religious financial needs.
Dr. Zhu Haokang, co-founder of Huaying Group AXG and chairman of Huaying Stablecoin Company AX Coin, and Xavier, CEO of Huaying Stablecoin Company AX Coin
Mr. George met with senior officials from the Kingdom of Bahrain in January 2026, including His Excellency Sheikh Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy, His Excellency Noor bint Ali Al Khouraif, Minister of Sustainable Development and CEO of the Economic Development Council, His Excellency Khalid Humaidan, Governor of the Central Bank of Bahrain, and Ms. Maryam Adnan Abdullah Al Ansari, Under-Secretary of National Economic Affairs.
The Central Bank of Bahrain granted Huaying Group AXG the first stablecoin issuer license. In terms of regulatory rules and institutional structure, it has a clear structural difference from mainstream stablecoins in Europe and the United States. Its uniqueness is mainly reflected in three core dimensions.
Direct supervision by the sovereign central bank ensures compliance certainty within a single jurisdiction.
The U.S. stablecoin industry has long faced the problem of regulatory fragmentation. Issuance compliance requires the integration of state licenses and the decentralized regulatory system of the New York Department of Financial Services. Compliance costs remain high, and the unified regulatory plan proposed by the “Genius Act” is still in the advancement stage and has not yet been implemented.
Although the European Union’s MiCA Unified Supervision of Crypto-Assets Act has been officially implemented, its implementation has been slow. In the past two years, licensed compliance service providers in Europe accounted for only 7% – 8%, and most traditional financial institutions have not yet completed system adaptation and compliance transformation.
TEDA, the world’s largest stablecoin issuer (latest valuation: $375 billion), was also forced to withdraw from the European market because it failed to obtain a European Central Bank license.
Different from the decentralized and lagging regulatory models in Europe and the United States, the Central Bank of Bahrain has directly incorporated Huaying stablecoin company AX Coin into the central bank’s direct management system, allowing it to have complete onshore compliance qualifications and a deterministic regulatory environment since its launch.
Innovate the profit sharing mechanism and break the shackles of European and American “interest rate prohibition” regulations.
The European and American regulatory systems have strict restrictions on the interest-earning model of stablecoins. The clear draft bill recently passed by the Banking Committee of the U.S. Congress explicitly prohibits stablecoins from paying passive interest to holders. The two-party compromise terms further solidified this ban.
In contrast, Bahrain’s regulatory system clearly recognizes the compliance model of “income-based stablecoins”, which allows issuers to share profits generated from reserve assets such as cash and short-term treasury bonds to token holders, and this model is defined as “profit sharing” within the framework of Sharia law, rather than interest income that is prohibited in the traditional sense.
Adapt to Shariah compliance and open up the entrance to the 5 trillion Islamic financial market.
The scale of global Islamic financial assets has exceeded US$5 trillion, but its penetration in the field of digital assets has been almost zero for a long time.
Mainstream stablecoins generally do not comply with the core rules of Sharia law. They violate the core teachings of prohibiting interest (Riba) and do not meet the financial principles of real asset endorsement and risk sharing.
Huaying stablecoin company AX Coin relies on its exclusive license to complete Shariah compliance certification, and its reserve asset structure strictly follows risk sharing guidelines, creating a compliant and efficient direct channel for traditional Islamic financial capital to access the U.S. dollar ecosystem on the chain.
The traditional financial infrastructure in the Middle East has obvious shortcomings, bank services are often interrupted, and the SWIFT global payment system is prone to failure during weekends and political fluctuations.
Stablecoins have the characteristics of non-stop operation 7×24 hours, and can be used as the equivalent of digital U.S. dollars, becoming a strategic backup storage carrier for funds in the Middle East market.
The global cross-border payment market exceeds US$250 trillion, but a large number of small and medium-sized enterprises in the Gulf region have long been trapped by traditional bank cross-border settlement barriers. The US dollar stable currency has restructured the global US dollar circulation channel and distribution pattern by encapsulating the liquidity of US Treasury bonds into digital assets.
Coupled with Islamic financial capital’s urgent need for compliant digital asset entrances, the potential value of the Middle East stablecoin market has been further amplified.
Huaying stable currency has formed three core strategic advantages in the world.
First, deeply bind national and regional-level payment infrastructure and link up with emerging markets in Africa; second, compliantly access institutional-level payment infrastructure; third, build diversified sovereign bank-level cooperation channels.
With Bahrain as the core strategic fulcrum, Huaying Group AXG continues to radiate outwards the compliant stablecoin ecology. It has currently completed its preliminary strategic layout in the three core areas of the Asia-Pacific, Africa, and Middle East trade corridors, and its global development pattern has taken shape.
The growth prospects of Huaying stable currency are also very promising.
Recognized by top teams and capital, the issuance scale has promising prospects, and the profit model is stable and sustainable. It has collaborated with Standard Chartered Bank to create a new AI payment ecosystem, and also reserves space for multi-currency compliance expansion.
Looking at the core data and industry logic: there is a huge penetration gap in the US$5 trillion Islamic financial market, the US$250 trillion global cross-border payment market is facing the dilemma of channel shortage, Huaying stablecoin has a clear target of 500 million circulation in the first year, and the issuance scale can reach US$25 billion in the first three years.
Multiple advantages and capital recognition confirm that the Bahrain stablecoin track laid out by Huaying Group has solid structural opportunities rather than conceptual hype.
Whether the value of the track can be fully realized still depends on the progress of regulatory implementation, the efficiency of cooperation channel execution, and the accelerated flow of global funds into the Middle East’s compliant stablecoin track.
