Singapore Gulf Bank seeks $50M to fund stablecoin firm acquisition

Update Nov. 25, 11 am UTC: This article has been updated to include a response from a Singapore Gulf Bank spokesperson.

The crypto-friendly digital bank Singapore Gulf Bank is reportedly looking for a fund injection of at least $50 million as it plans to acquire a stablecoin payments company in 2025.

On Nov. 25, Bloomberg reported that Singapore Gulf Bank was willing to sell 10% of its equity by early 2025 to raise funds for an acquisition, citing anonymous people with direct knowledge of the matter. 

The bank is run by the Whampoa Group, a family office based in Singapore, which was recently awarded operational license approval in Bahrain .

Speaking to Cointelegraph, a Singapore Gulf Bank spokesperson denied commenting on the rumor, stating its company’s “policy of not discussing ongoing strategic initiatives.”

Giving up equity for business expansion

According to the unidentified sources, Singapore Gulf Bank is in talks with a Middle East sovereign wealth fund and other investors to sell the equity stake.

The funds would be used to accelerate product development, enhancing the bank’s payment network and talent acquisition. The bank also plans to purchase a stablecoin payments firm in the Middle East or Europe by the first quarter of 2025, according to the report.

Related: Cointelegraph establishes Middle East office at the DMCC Crypto Centre

Currently, investors from Bahrain, Dubai and Abu Dhabi are the most active in the Web3 ecosystem in the Middle East.

A Chainalysis report from September found that the Middle East and North Africa region (MENA) account for 7.5% of all cryptocurrency transactions globally.

Breakdown of value received in the Middle East and North Africa region by transaction size. Source: Chainalysis

Middle East’s contribution to global crypto adoption

The report said about 93% of transactions were for $10,000 or more — dwarfing small retail investors, who account for 1.8% of all transaction volume in the region.

Onchain traffic in the region was primarily conducted through centralized exchanges. Still, the report noted the United Arab Emirates and Saudi Arabia’s “high interest” in decentralized platforms.

UAE year-over-year growth in value received by investor class. Source: Chainalysis

Recently, the Central Bank of the United Arab Emirates approved a custodial insurance product to protect financial institutions and their clients from losses resulting from hacks, internal fraud and damage to storage infrastructure.

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