Singapore Gulf Bank is embarking on a $50 million fundraising initiative and planning to acquire a stablecoin payments firm by early 2025, marking a significant step in its growth strategy, sources familiar with the matter have revealed.
Established by Singapore family office Whampoa Group and operating under a Bahrain license since February, the bank is in discussions with a Middle East sovereign wealth fund and other investors to sell an equity stake of under 10% by the start of next year.
According to insiders, the funds will primarily support the development of new products, the expansion of its payment network, and the recruitment of additional staff. The acquisition of a stablecoin payments company is slated for the first quarter of 2025, targeting firms in the Middle East or Europe. The bank has declined to comment on the specifics of its fundraising or acquisition plans.
Growing Optimism in the Digital Asset Space
Confidence in the digital asset sector is climbing, buoyed by expectations of favorable regulatory frameworks in the United States. Under President-elect Donald Trump, the value of the cryptocurrency market has surged by approximately $1 trillion since his electoral victory on November 5. Analysts predict a rise in mergers and acquisitions within the crypto space as a result.
Stablecoins, a pivotal component of the digital asset ecosystem, have garnered increasing attention. These crypto tokens are pegged to traditional currencies, primarily the US dollar, and are supported by reserves of cash and bonds. Their efficiency in offering cost-effective, fast, and accessible payment options positions them as a disruptive alternative to conventional banking systems.
Middle Eastern Crypto Hubs Lead the Way
Globally, jurisdictions are vying to establish themselves as crypto-friendly hubs that attract businesses while maintaining robust investor protections. In the Middle East, Bahrain, Dubai, and Abu Dhabi are emerging as key contenders, each striving to foster innovation in blockchain technology and related services.
Singapore Gulf Bank, backed by sovereign wealth fund Bahrain Mumtalakat Holding and Whampoa Group, currently allows corporate clients to manage both traditional and digital assets on a unified platform. The bank aims to extend this service to individual clients by the close of the year, signaling its commitment to bridging traditional finance with the burgeoning crypto industry.
A Changing Landscape for Crypto Banking
While crypto businesses have historically faced challenges in accessing traditional banking services due to industry volatility and past controversies, the environment is evolving. Financial hubs are increasingly introducing tailored regulatory frameworks, easing barriers for crypto firms to engage with mainstream banking.
Singapore Gulf Bank’s bold initiatives underscore the growing synergy between traditional finance and the digital asset space, heralding a transformative period for the sector.
