In March 2023, open banking platform Tarabut Gateway confirmed its partnership with Bahrain-licensed cryptocurrency exchange Rain. This collaboration aims to provide consumers with a quicker and more affordable way to fill their cryptocurrency wallets. Due to the arrangement, users won’t have to leave Rain’s platform to top their accounts directly from their bank accounts.
Meanwhile, this is Tarabut’s first partnership with a crypto asset service. Rain is the first regulated trading platform for digital assets in the MENA region. Users can purchase and sell digital assets, such as Bitcoin and Ethereum. It will also allow users to make direct transactions from their bank accounts without leaving Rain’s platform.
Abdulla Almoayed, founder and CEO of Tarabut Gateway, confirmed the firm’s delight in enabling such financing methods directly from bank accounts and their excitement to introduce a solution that promises to make fiat-to-crypto transfers faster, more secure, and cost-effective.
An open banking platform allows a consumer access to accounts from several banks, issuers of credit cards, and other financial services firms, enabling them to transfer money between them quickly. By examining their purchasing patterns, third-party FinTech platforms like Tarabut Gateway direct users to financial services and solutions specifically suited to their needs.
What The Tarabut-Rain Partnership Mean for MENA‘s Crypto Trading Industry
According to Chainalysis, the MENA area is currently the world’s fastest-growing cryptocurrency sector. As a result, the region’s crypto market is expanding exponentially. The amount of cryptocurrency received in MENA increased by 48% in the year leading up to June 2022.
Three of the top 30 nations in this year’s report are also located in the MENA region: Morocco (24), Turkey (12), and Egypt (14). The company also confirmed that use cases involving the preservation of funds and remittance payments, along with loosening laws on cryptocurrencies, serve to explain why.
Even though the United Arab Emirates (UAE), Saudi Arabia, Bahrain, and other critical business centres in the area haven’t consistently ranked high on the crypto adoption index, Chainalysis stated their significance in the cryptocurrency industry should not be undervalued.
With the help of Tarabut, data and payments can flow between banks and FinTech companies that offer financial services to end customers. In its seed round and pre-Series A investment round in 2021, the company raised $25m. The backing for the investments came from Tiger Global, Dubai International Fintech Fund, and the Investment Vehicle of Dubai’s International Financial Center.
The Tarabut/Rain collaboration also occurs as cryptocurrency companies search for banking services outside of the United States following three banking failures. According to a news release from Tarabut, the new feature would employ Tarabut Gateway’s open banking payment offering to give users access to on- and off-ramp (fiat-crypto-fiat) transfers, boosting speed and lowering errors related to conventional bank wire transfers.
Nevertheless, The first Open Finance Lab in the region, a six-month program project, included Tarabut Gateway in mid-2022. To increase its operations in the Kingdom, the UAE-based organization also disclosed four collaborations with Saudi-listed banks last year
