Singapore Gulf Bank's Bold Move: $50M Fundraising and Stablecoin Expansion

Singapore Gulf Bank is gearing up for significant expansion, aiming to raise at least US$50 million in a funding round and planning the acquisition of a stablecoin payments firm in 2025, according to insiders familiar with the matter.

The Bahrain-licensed bank, launched by Singapore’s Whampoa Group, is in discussions with a Middle Eastern sovereign wealth fund and other investors to sell an equity stake of less than 10% by early 2025. These funds will be directed toward enhancing product development, expanding the payment network, and increasing hiring. The acquisition, expected in the first quarter, will target a firm based in the Middle East or Europe.

While a spokesperson for Singapore Gulf Bank declined to comment on these developments, optimism in the digital asset space is climbing, fueled by the promise of supportive regulations under US President-elect Donald Trump. Since his election victory on November 5, the crypto market’s value has surged by approximately US$1 trillion.

Analysts predict an uptick in mergers and acquisitions, particularly in stablecoin-focused areas. Stablecoins, pegged to fiat currencies like the US dollar and backed by reserves of cash and bonds, are gaining traction due to their speed, cost-effectiveness, and accessibility compared to traditional banking systems.

The bank, backed by Bahrain Mumtalakat Holding and Whampoa Group, is at the forefront of integrating traditional and digital financial services. Currently serving corporate clients, it plans to extend its platform to individual users by the end of 2024. With Bahrain, Dubai, and Abu Dhabi competing to establish themselves as crypto hubs, Singapore Gulf Bank’s moves reflect a broader shift as financial centres roll out dedicated regulatory frameworks to attract blockchain-based businesses.

While crypto businesses have historically faced challenges accessing traditional banking due to industry volatility, the regulatory landscape’s evolution is fostering greater confidence. As a result, Singapore Gulf Bank's bold initiatives signal its intent to lead in this transforming financial ecosystem.

Original article by Bloomberg News, published in The Straits Times. Read here or download the PDF below.

Singapore Gulf Bank to raise funds, buy stablecoin payments firm _ The Straits Times.pdf

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