Singapore Gulf Bank is reportedly aiming to raise at least $50 million to fund its acquisition of a stablecoin payments company by 2025.
Singapore Gulf Bank is reportedly aiming to raise at least $50 million to fund its acquisition of a stablecoin payments company by 2025.
According to sources familiar with the situation, the bank plans to sell a 10% equity stake to secure the necessary capital, as reported by Bloomberg on Nov. 25.
The bank, which operates under the Whampoa Group, a family office based in Singapore, has recently received operational license approval in Bahrain. It is currently in discussions with a Middle Eastern sovereign wealth fund and other investors regarding the equity sale.
The funds raised will be directed toward product development, enhancing the bank's payment network, and recruiting talent. The planned acquisition aims to bolster the bank's capabilities in the growing market for stablecoin payments, with a target date set for the first quarter of 2025.
The Middle East has seen increased investment activity in the Web3 ecosystem, with significant participation from investors based in Bahrain, Dubai and Abu Dhabi.
A recent Chainalysis report highlighted that the Middle East and North Africa (MENA) region accounts for 7.5% of global cryptocurrency transactions.
Notably, the report indicated that approximately 93% of these transactions involve $10,000 or more, suggesting a market dominated by larger investors rather than small retail participants, who represent only 1.8% of transaction volume.
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