XBTO’s Bitcoin Yield Strategy Gains Traction — Gulf Banks Could Be Next

XBTO, a global leader in institutional digital asset management, has announced a landmark partnership with Arab Bank Switzerland to launch a sophisticated Bitcoin yield product for wealth management clients. The product, powered by XBTO’s proprietary “Diamond Hands” strategy, enables high-net-worth clients to generate yield on their Bitcoin holdings through actively managed options-based strategies.

But the firm’s ambitions don’t stop in Switzerland. In a shared statement with Unlock Blockchain, Karl Naim, XBTO’s Chief Commercial Officer and General Manager for the UAE, revealed that the company is in advanced talks with multiple GCC-based institutions to bring similar offerings to the region.

“The pathway exists and it’s become increasingly clear that it runs through regulatory clarity, not regulatory arbitrage,” Naim said. “Our ADGM license and UAE operations provide the regulatory foundation, but the real catalyst is market precedent.”

Naim pointed to recent developments like Zand Bank’s crypto integrations and Emirates NBD’s crypto offering through Liv as indicators that Gulf banks are no longer shying away from digital assets. “Once the region’s largest bank begins facilitating crypto trading, the conversation shifts from ‘if’, to ‘how soon’,” he added.

From Custody to Yield: A Rapid Evolution

Arab Bank Switzerland, which has provided Bitcoin custody since 2019 through Taurus, identified a clear client need for yield-bearing strategies. While the bank offered secure custody and loan-to-value lending, high-net-worth clients sought more productive Bitcoin deployments.

“This collaboration will position Arab Bank Switzerland as the first traditional Swiss private bank to offer an integrated, bank-branded Bitcoin yield product, while maintaining the personal relationship and fiduciary care clients expect,” said Romain Braud, Head of Digital Assets at the bank.

Naim emphasized that the structure of the Swiss partnership — “an Arab Bank Switzerland product powered by XBTO” — was deliberately designed as "a blueprint for replication in the GCC".

“Many Gulf private banks already have custody relationships with Fireblocks, Taurus, or Zodia,” he said. “Once you've solved Bitcoin custody — the hardest part — adding yield products becomes a weeks-long integration, not a months-long rebuild.”

Gulf Banks Rethink Crypto: From Exposure to Productivity

XBTO’s options-driven "Diamond Hands" strategy aims to provide steady yield and strategic Bitcoin accumulation while preserving capital — something increasingly attractive to institutional investors in the region.

“The market has reached an inflection point,” said Naim. “Family offices and ultra-high-net-worth individuals in the Gulf no longer want passive Bitcoin exposure. They want structured products that generate income while preserving their digital asset thesis.”

He added that pressure is mounting on regional banks to act. “When players like Emirates NBD and Wio roll out crypto services, other banks are forced to follow. No one wants to be perceived as lagging behind in innovation.”

Institutional Interest Accelerates Across the GCC

Naim confirmed XBTO is currently engaged in advanced discussions with multiple Gulf banks. “We’re in substantive conversations with institutions that manage significant wealth across the region,” he said. “They want to retain client relationships in-house while leveraging institutional-grade digital asset capabilities — and we provide exactly that.”

XBTO is targeting at least one additional Gulf partnership announcement within the next 6–12 months, Naim revealed.

“The regulatory clarity in the UAE and Bahrain, combined with rising demand from family offices, is creating optimal conditions for rapid deployment,” he said. “We’re not just offering a product; we’re becoming the quantitative engine powering digital asset strategies for some of the region’s most respected financial institutions.”

Crypto Yield Strategies Aligned With Gulf Ambitions

XBTO sees its crypto yield model as aligning closely with Gulf national strategies like Saudi Arabia’s Vision 2030 and the UAE’s digital finance transformation.

“This is institutionalisation in action,” said Naim. “We’re watching the Gulf shift from defensive posturing to aggressive opportunity capture. These are long-term strategic bets on crypto infrastructure.”

As regulatory clarity improves across the GCC and institutional appetite matures, XBTO’s proven model with Arab Bank Switzerland offers a compelling playbook for banks across the region. By combining rigorous risk management, regulatory oversight, and capital efficiency, the firm is positioning itself at the center of Gulf crypto innovation.