Singapore Gulf Bank Eyes $50 Million Acquisition of Stablecoin Payments Company

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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November 24, 2024

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Singapore Gulf Bank seeks to raise at least $50 million to acquire a stablecoin payments company in 2025.

The bank, established in February 2024 by Singapore’s Whampoa Group and licensed in Bahrain, reportedly plans to sell 10% of its equity by early 2025 to fund the acquisition.

The decision comes amid the growing adoption of stablecoins and cryptocurrencies within the global banking sector.

Singapore Gulf Bank’s Stablecoin Expansion Plans and Fundraising Efforts

According to sources familiar with the discourse, the bank is in discussions with a Middle East sovereign wealth fund and other investors to secure the necessary funds.

The raised capital will help with the acquisition and enable Singapore Gulf Bank to enhance its payment network and recruit talent.

The acquisition of a stablecoin payments company will further solidify its position in the crypto space and provide clients with more digital payment solutions.

The bank is expected to make the purchase by the first quarter of 2025, focusing on firms based in the Middle East or Europe.

The surge in interest around stablecoins is driven by their reliability, being pegged to fiat currencies such as the U.S. dollar.

Globally, institutions like Siam Commercial Bank and Japan’s Mitsubishi UFJ Financial Group have launched stablecoin initiatives.

Countries like Bahrain and the United Arab Emirates (UAE) are leading the charge to become global crypto hubs, with regulatory frameworks designed to protect both investors and blockchain-based companies.

A Chainalysis report from September found that the Middle East and North Africa (MENA) region accounts for 7.5% of global cryptocurrency transactions, with 93% of these transactions valued at $10,000 or more.

This highlights the region’s appeal to institutional investors and its growing interest in decentralized platforms.

Singapore’s Regulatory Support for Crypto Innovations Usher In Interest from Global Institutions

The development of regulations around stablecoins continues to grow.

Singapore’s Monetary Authority of Singapore (MAS) recently finalized a regulatory framework for single-currency stablecoins. The framework ensures stability and transparency, with issuers meeting specific criteria to be recognized as “MAS-regulated stablecoins.”

This regulatory clarity is expected to further drive innovation and confidence in the market.

As Singapore Gulf Bank prepares for its acquisition, the increasing crypto adoption and evolving regulatory landscape provide a favorable environment for its growth.

Meanwhile, other financial players are enhancing their crypto offerings.

On November 21, U.S. crypto custodian BitGo announced the launch of its Singapore subsidiary, which will offer regulated token management services across the Asia-Pacific region.

Similarly, crypto exchange OKX has begun facilitating instant deposits and withdrawals in Singapore dollars, deepening its integration into Singapore’s financial infrastructure.