Originally published on: November 25, 2024
Amid the growing popularity of stablecoins and digital banking, Singapore Gulf Bank is making waves with its plans to acquire a stablecoin payments company. To fund this ambitious move, the bank is seeking a fund injection of at least $50 million by early 2025.
According to Bloomberg sources, Singapore Gulf Bank, known for its crypto-friendly approach, is looking to sell 10% of its equity to raise the necessary funds for the acquisition. The bank, which is backed by the Whampoa Group, a prestigious family office in Singapore, recently obtained operational license approval in Bahrain.
While a Singapore Gulf Bank spokesperson declined to comment on the rumors, citing a policy of not discussing ongoing strategic initiatives, the sources revealed that the bank is in talks with a Middle East sovereign wealth fund and other investors to secure the required capital.
The funds raised will be used to boost product development, strengthen the bank’s payment network, and recruit top talent. Additionally, Singapore Gulf Bank aims to finalize the acquisition of a stablecoin payments firm in either the Middle East or Europe by the first quarter of 2025.
As the Middle East emerges as a hotspot for cryptocurrency transactions, with Bahrain, Dubai, and Abu Dhabi leading the way in the Web3 ecosystem, Singapore Gulf Bank’s strategic move signals a growing interest in the region’s crypto landscape.
A Chainalysis report highlighted that the MENA region accounts for 7.5% of global cryptocurrency transactions, with substantial activity in transactions valued at $10,000 or more. Centralized exchanges currently dominate the onchain traffic in the region, but there is a noticeable uptick in interest from the UAE and Saudi Arabia in decentralized platforms.
Noteworthy developments, such as the Central Bank of the UAE’s approval of a custodial insurance product to safeguard financial institutions and clients from cyber threats and fraud, underscore the region’s commitment to fostering a secure crypto environment.
As Singapore Gulf Bank sets its sights on acquiring a stablecoin payments company, the crypto community awaits further updates on this strategic move that could reshape the digital banking landscape. Stay tuned for more insights and updates on the evolving crypto market by subscribing to our newsletter today.