Saudi Awwal Bank (SAB) partnered with Chainlink to develop on-chain financial applications, signaling a bullish outlook for institutional Web3 adoption and RWA tokenization in Saudi Arabia.

Executive Summary

Saudi Awwal Bank (SAB), a major Saudi financial institution, has formally partnered with Chainlink to leverage its Cross-Chain Interoperability Protocol (CCIP) and operating environment. This collaboration aims to facilitate the development of next-generation on-chain financial applications within Saudi Arabia, aligning with the Kingdom's Vision 2030 for economic diversification. The initiative represents a significant step towards institutional real-world asset (RWA) tokenization and the broader integration of blockchain technology into traditional finance, fostering digital transformation in the banking sector.

The Event in Detail

Saudi Awwal Bank (SAB), a Riyadh-based Saudi joint stock company with a minority stake held by HSBC, has entered an innovation agreement with Chainlink. The partnership specifically focuses on utilizing Chainlink's CCIP and its Chainlink Runtime Environment (CRE) to advance the development of on-chain financial applications in Saudi Arabia. CCIP is designed for the secure transport of data and value across diverse blockchain networks. The CRE, released in late 2024, provides an orchestration environment for interoperability, enabling the composition of basic building blocks into custom workflows. This development follows Oumla, a Layer 1 blockchain platform, announcing its partnership with Chainlink and adopting the Chainlink standard on OumlaChain, a compliance-focused, permissioned blockchain operating in Saudi Arabia.

Business Strategy & Market Positioning

SAB's strategic embrace of Chainlink's blockchain infrastructure is consistent with Saudi Arabia's Vision 2030 objectives to drive economic diversification and technological advancement. By integrating these advanced capabilities, SAB aims to position Saudi Arabia as a prominent hub for modern financial services. This strategy reflects a growing trend among global financial institutions, including Swift, Fidelity International, ANZ Bank, and SBI Group, which have also integrated Chainlink's technology for various applications. For example, SBI Group partnered with Chainlink to expand blockchain-based financial tools across Japan and the Asia-Pacific region, utilizing CCIP, Smart NAV data feeds, and Proof of Reserve services for tokenized assets and stablecoins. The Web3 Alliance of Saudi Arabia (WASA) further supports this ecosystem, working to accelerate the adoption and integration of blockchain technology nationwide.

Market Implications

This partnership signifies a material progression in the integration of traditional finance with blockchain technology across the Middle East and North Africa (MENA) region. The adoption of Chainlink's CCIP by a major traditional financial entity such as SAB indicates increasing confidence in blockchain infrastructure for institutional applications. This is anticipated to accelerate real-world asset (RWA) tokenization and the expansion of cross-chain financial services. Such a precedent could encourage other financial institutions in the region and globally to explore similar integrations, potentially increasing demand for Chainlink's services and its LINK token. Saudi Arabia's crypto market, valued at $23.1 billion in 2024, is projected to reach $45.9 billion by 2033, with crypto transaction values surging 153% from July 2023 to June 2024, reaching over $31 billion, predominantly driven by institutional engagement. Approximately 11.4% of the Saudi population holds crypto assets.

Broader Context

The Middle East is emerging as a critical region in global crypto regulatory development, with governments formulating frameworks to balance innovation and consumer protection. Saudi Arabia is actively investigating the feasibility of a Central Bank Digital Currency (CBDC) and participated in the mBridge CBDC pilot, alongside the UAE, China, Thailand, and Hong Kong. Chainlink holds a significant position as a foundational Web3 infrastructure provider, securing over $93 billion in on-chain value across ecosystems in 2025 and processing $20 trillion in Total Value Enabled (TVE) during Q1 2025. Its CCIP has expanded to over 60 blockchains, supporting diverse cross-chain use cases and enterprise integrations, and it powers over 90% of DeFi lending and derivatives platforms on Ethereum. The continuous expansion of Chainlink's offerings, including SmartNAV feeds for tokenized equity pricing and the Candlestick API for real-time trading data, underscores its pivotal role in the ongoing digital transformation of both decentralized and traditional finance.