Singapore Gulf Bank Seeks $50M for Stablecoin Firm Acquisition
Singapore Gulf Bank plans to raise $50M by selling a 10% equity stake to fund product expansion and a 2025 stablecoin payments acquisition.
Giving Up Equity for Strategic Growth
Crypto-friendly Singaporean digital bank, operated by Whampoa Group is looking to raise $50 million in funding by selling 10% of its equity stake by early 2025. The bank plans to use the funds in an effort to ramp up its payment network and prepare to acquire a stablecoin payments firm in either the Middle East or Europe by the first quarter of 2025.
Anonymous sources disclosed that talks are already going on with sovereign wealth funds from the Middle East, among other investors. Though the strategic move shows the ambition of the bank, a spokesperson would not confirm the reports, citing the company’s policy of not commenting on its initiatives that remain ongoing.
Middle East Leads in Crypto Adoption
The MENA region is driving recent cryptocurrency activity globally, accounting for 7.5% of all such transactions, according to a report by Chainalysis. What is telling is that 93% of those are transactions valued at $10,000 or more, with the influence of institutional investors more pronounced than that of retail participants.
Bahrain, Dubai, and Abu Dhabi are on the frontline of investing in Web3 within the region. The UAE, for instance, has taken additional steps with custodial insurance products to show that it is serious about creating a secure and strong cryptocurrency ecosystem.
Expansion into Stablecoin Payments
Singapore Gulf Bank’s emphasis on stablecoin payments shows an increasing demand for smooth, borderless financial solutions. Stablecoins are treated as cash and are designed not to have much movement, mainly for their efficiency in cross-border transactions.
Acquiring a stablecoin payments firm, the bank seeks to integrate innovative technologies into its operations and strengthen its position in the competitive crypto landscape. It also plans to use the funding towards developing its products, increasing its workforce, and improving the bank’s payment network capabilities.
Strategic moves by Singapore Gulf Bank prove that it is confident in the global crypto market that is still evolving. Considering the MENA region as the most important for mainstream crypto adoption, the bank’s Middle East and European-focused approach could offer some real growth opportunities.
