Singapore Gulf Bank wants to raise at least $50m to buy stablecoin firm: report

Singapore Gulf Bank is aiming to raise at least $50 million to acquire a stablecoin payments firm by early 2025, inside sources say.

According to a Bloomberg report on Nov. 25, inside sources that do not wish to be identified say that Singapore Gulf Bank plans to purchase a stablecoin payment company. Although they refuse to say which stablecoin firm it will acquire.

The funds will be used to accelerate product development, enhance the bank’s payment network and hire more staff, sources state. The bank is already negotiating with a Middle Eastern sovereign wealth fund as well as several investors interested in selling an equity stake of less than 10% by the first quarter of 2025.

Singapore Gulf Bank was established in February this year by Singapore’s multi-family office Whampoa Group and licensed in Bahrain. The firm specializes in managing traditional finance and cryptocurrency on the same platform and plans to offer its services to customers by the end of this year. The startup bank is backed by sovereign wealth fund Bahrain Mumtalakat Holding Co and the Whampoa Group.

Stablecoins have become a popular choice for banks in many parts around the world due to the reliability of its value, as it is pegged to fiat currencies most often the U.S dollar. Thailand’s Siam Commercial Bank and Japan’s Mitsubishi UFJ Financial Group are among the banking firms that have launched stablecoin endeavors.

Several countries are in the process of developing crypto hubs and regulations that protect investors as well as companies specializing in blockchain technology and services. Middle Eastern countries such as Bahrain, Dubai and Abu Dhabi are among those competing to attract investors interested in the stablecoin and crypto spheres.

Singapore’s own financial regulators, the Monetary Authority of Singapore, recently finalized a regulatory framework for single-currency stablecoins. As previously reported by crypto.news, the law applies to non-bank issuers of single-currency stablecoins linked to the Singapore dollar or any G10 currencies if their value surpasses $5 million SGD or equal to $3,567 USD.

The regulatory framework covers several points, including the requirements for value stability, capital, redemption at par and disclosure of audit results to users.

Only stablecoin issuers that are able to meet all the listed criteria can apply to the agency in order to receive the status of “MAS-regulated stablecoins.”