In 2025, Singapore Gulf Bank intends to acquire a stablecoin payments company by raising a minimum of $50 million.
The bank, chartered in Bahrain and established by Singapore’s Whampoa Group in February 2024, reportedly plans to sell 10% of its equity by early 2025 to finance the acquisition.
The decision is made in response to the increasing adoption of stablecoins and cryptocurrencies in the global banking sector.
Stablecoin Expansion Plans and Fundraising Efforts of Singapore Gulf Bank
According to sources familiar with the discourse, the bank is currently discussing securing the requisite funds with a Middle East sovereign wealth fund and other investors.
The capital raised will facilitate the acquisition and allow Singapore Gulf Bank to improve its payment network and attract top-tier talent.
Acquiring a stablecoin payments company will further solidify its position in the crypto space and offer clients a broader range of digital payment solutions.
By the first quarter of 2025, the bank plans to acquire the company, focusing on companies in Europe or the Middle East.
The increase in interest in stablecoins results from their dependability, which is linked to fiat currencies like the U.S. dollar.
Institutions such as Siam Commercial Bank and Mitsubishi UFJ Financial Group in Japan have implemented stablecoin initiatives on a global scale.
Bahrain and the United Arab Emirates (UAE) are among the nations spearheading the effort to establish global crypto centers. These countries have implemented regulatory frameworks intended to safeguard investors and blockchain-based companies.
According to a September report by Chainalysis, the Middle East and North Africa (MENA) region is responsible for 7.5% of global cryptocurrency transactions, with 93% valued at $10,000 or more.
This underscores the region’s increasing interest in decentralized platforms and its allure to institutional investors.
Singapore’s Regulatory Support for Crypto Innovations Usher In Interest from Global Institutions
There is an ongoing expansion of regulations regarding stablecoins.
The Monetary Authority of Singapore (MAS) has recently completed the development of a regulatory framework for single-currency stablecoins. The framework guarantees stability and transparency by recognizing issuers that satisfy specific criteria as “MAS-regulated stablecoins.”
This regulatory clarity will likely serve to bolster market confidence and innovation.
The evolving regulatory landscape and the growing prevalence of cryptocurrency present a favorable environment for Singapore Gulf Bank’s expansion as it prepares for its acquisition.
In the interim, other financial institutions are improving their cryptocurrency offerings.
BitGo, a U.S. crypto custodian, announced the establishment of its Singapore subsidiary on November 21. The subsidiary will provide regulated token administration services throughout the Asia-Pacific region.
In the same vein, OKX, a cryptocurrency exchange, has enabled immediate deposits and withdrawals in Singapore dollars, further solidifying its integration into Singapore’s financial infrastructure.
