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Singapore Gulf Bank, a blockchain-focused financial institution, is planning to raise at least $50 million in a new funding round as it gears up to acquire a stablecoin payments firm next year, Bloomberg reported on Monday, citing sources familiar with the matter.
The bank, founded by Singapore's Whampoa Group and licensed in Bahrain since February, is in advanced discussions with investors, including a prominent Middle Eastern sovereign wealth fund, to sell less than a 10% equity stake, the report said.
The deal is expected to close by early 2025, with proceeds earmarked for product development, expanding its payment network, and boosting its workforce.
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In the first quarter of 2025, the bank intends to acquire a stablecoin-focused payments company in either the Middle East or Europe, signaling a move to strengthen its capabilities in digital asset payments. While the bank has declined to comment on its valuation or acquisition details, the planned expansion aligns with the increasing global interest in stablecoins and blockchain-backed payment solutions.
Stablecoins and the Growing Digital Asset Market
Stablecoins, which maintain their value by pegging to fiat currencies like the US dollar, are gaining traction for their speed, cost-efficiency, and accessibility compared to traditional banking systems. As jurisdictions like Bahrain, Dubai, and Abu Dhabi position themselves as crypto-friendly hubs, digital asset businesses are finding increased regulatory clarity and opportunities for expansion.
The timing of this funding aligns with renewed optimism in the crypto sector, spurred by industry-friendly regulatory prospects in the US under President-elect Donald Trump. Since Trump's election, the cryptocurrency market has surged by $1 trillion to $3.35 trillion as of Monday, raising expectations of a flurry of deals in the coming months.
Singapore Gulf Bank's Strategic Positioning
Currently, Singapore Gulf Bank enables corporate clients to manage both traditional financial assets and cryptocurrencies within a unified platform. By the end of 2024, the bank plans to extend its services to individual customers, solidifying its role as a comprehensive provider in the digital finance space. Supported by Bahrain's sovereign wealth fund Mumtalakat Holding Co. and the Whampoa Group, the bank is well-positioned to capitalize on the rapidly evolving financial landscape.
This move also reflects the bank’s confidence in the stablecoin market and its potential to bridge traditional finance and the decentralized economy, especially with regulatory clarity and investor confidence improving.
