National Bank of Bahrain (NBB) has signed a memorandum of understanding with blockchain settlement company Partior to examine whether the Bahraini dinar could be settled on Partior’s multi-bank network. The companies announced the agreement on October 15.

The proposed arrangement would see NBB potentially serve as a dinar settlement bank on the network. Both parties will study the operating model, implementation requirements, technical feasibility and relevant regulation before deciding whether to proceed.

In its announcement, NBB described the arrangement as a framework for evaluating how its local market capabilities might support dinar settlement. It did not announce a live BHD service, an implementation date or a binding commercial rollout.

Vineet Munot, NBB’s group head of transaction banking, said the bank would assess the technical, operational and regulatory implications of joining new settlement infrastructure. Partior Chief Executive Officer Humphrey Valenbreder said the work could expand the number of currencies supported by the network and build on its presence in the Gulf Cooperation Council markets.

Partior operates a multi-bank settlement infrastructure aimed at supporting cross-border flows. Adding more locally supported currencies could help participating banks manage settlement across markets, although the proposed Bahrain integration remains subject to assessment.

The latest agreement follows Partior’s recent work with London Stock Exchange Group’s DiSH framework on a 24-hour, multi-bank liquidity model. NBB and Partior have not disclosed financial terms or a target date for completing their evaluation.

Partior, LSEG DiSH develop 24/7 multi-bank liquidity framework