Singapore Gulf Bank Eyes $50M for Stablecoin Firm Acquisition

Singapore Gulf Bank seeks to sell an equity share to fund product expansion and a 2025 stablecoin payments acquisition.

Singapore Gulf Bank, a crypto-friendly digital bank, is reportedly seeking a minimum of $50 million in funding as it plans to acquire a stablecoin payments company by 2025.

On November 25, Bloomberg reported that Singapore Gulf Bank intends to sell 10% of its equity by early 2025 to raise the necessary funds for the acquisition.

The information comes from unnamed sources familiar with the matter. The bank, operated by Singapore's Whampoa Group—a family office that recently received an operational license in Bahrain—has not officially commented on the speculation.

Using Equity to Fund Growth

According to the anonymous sources, Singapore Gulf Bank is in discussions with a Middle Eastern sovereign wealth fund and other potential investors to offload the equity stake.

The proceeds will be directed towards product development, expanding the bank's payment network, and hiring talent.

Additionally, the bank reportedly plans to acquire a stablecoin payments firm in the Middle East or Europe by the first quarter of 2025.

The report highlights that Bahrain, Dubai, and Abu Dhabi are currently leading investment activity in the Web3 ecosystem within the Middle East.

MENA's Growing Role in Crypto

A September report from Chainalysis revealed that the Middle East and North Africa (MENA) region accounts for 7.5% of global cryptocurrency transactions.

Approximately 93% of these transactions involve amounts exceeding $10,000, underscoring the dominance of institutional investors, with smaller retail investors contributing just 1.8% to the transaction volume.

While centralized exchanges dominate on-chain activity in the region, the report also noted strong interest in decentralized platforms from countries like the United Arab Emirates (UAE) and Saudi Arabia.

Recently, the UAE Central Bank introduced a custodial insurance product to safeguard financial institutions and their clients against losses caused by hacks, internal fraud, and infrastructure damage.