Singapore Gulf Bank Plans $50M Fundraising for Stablecoin Payments Acquisition

Per reports, the funds will be directed towards acquiring a stablecoin payments company and accelerating key operations, including product development, expanding its payment network, and hiring additional staff.

The bank has already begun negotiations with a Middle Eastern sovereign wealth fund and a few other investors. The goal is to sell less than 10% of its equity stake by the first quarter of 2025. 

A Vision for the Future

Singapore Gulf Bank was licensed in Bahrain earlier this year, with the aim of merging traditional finance and cryptocurrency on a unified platform. The bank’s approach to digital finance aims to bridge the gap between conventional banking services and emerging blockchain technologies. With these ambitions, the bank hopes to offer a comprehensive range of services to both traditional and crypto-savvy customers by the end of 2024.

The Whampoa Group, a prominent Singapore-based multi-family office, is heavily involved in running the bank. The group’s backing has granted the bank resources to embark on its goals. 

Stablecoin Acquisition Strategy

One of the most significant aspects of Singapore Gulf Bank’s 2025 strategy involves acquiring a stablecoin payments company. Stablecoins—cryptocurrencies pegged to stable assets like the U.S. dollar—have gained considerable traction for their reliability and cost-effective transactions. By acquiring such a company, the bank aims to enhance its ability to provide global, fast, and cheap payment solutions to its customers.

The acquisition is planned for the first quarter of 2025, with the focus on firms based in the Middle East or Europe. The move is in line with a growing trend of banks and financial institutions seeking to leverage stablecoins for smoother and faster transactions. Other prominent banks worldwide, such as Thailand’s Siam Commercial Bank and Japan’s Mitsubishi UFJ Financial Group, have also made similar moves into stablecoin ventures.

Middle East as a Crypto Hub

The Middle East, in particular, has emerged as a leading region for the adoption of digital assets, including stablecoins. Countries like Bahrain, Dubai, and Abu Dhabi are aggressively positioning themselves as hubs for cryptocurrency innovation and investment.

Bahrain’s own regulatory framework for stablecoins has helped make it an attractive destination for crypto businesses. According to Chainalysis, the Middle East and North Africa (MENA) region accounted for 7.5% of global cryptocurrency transactions as of September.