Singapore Gulf Bank Raises $50M for Stablecoin Expansion

Singapore Gulf Bank is seeking to raise $50 million in funding as it plans to acquire a stablecoin payments company. The bank, backed by Whampoa Group, which received its Bahrain license in February, is reportedly in discussions with a Middle East sovereign wealth fund and other investors to sell less than a 10% equity stake by early 2025.

The funding will primarily support product development, payment network enhancement, and talent acquisition, according to sources familiar with the matter. Singapore Gulf Bank’s platform currently enables companies to manage both traditional and digital assets in a single interface, with plans to extend these services to individual customers by year-end.

The bank’s backing from sovereign wealth fund Bahrain Mumtalakat Holding Co. and Whampoa Group underscores growing institutional confidence in digital asset services. The fundraising coincides with growing optimism in the digital asset sector, particularly following Donald Trump’s election victory. The crypto market has gained approximately $1 trillion since Trump’s November 5 win, with expectations of supportive industry regulations under his administration.

The bank’s interest in acquiring a stablecoin payments company reflects the growing importance of these digital assets. This is because stablecoins generally offer advantages in speed, cost, and accessibility compared to traditional banking rails. The planned acquisition, targeted for the first quarter in either the Middle East or Europe, aligns with increasing institutional adoption of stablecoin technology.

The move comes amid fierce competition among Middle Eastern financial centers, with Bahrain, Dubai, and Abu Dhabi all vying to attract blockchain-based businesses. These jurisdictions are developing comprehensive crypto frameworks that balance investor protection with business-friendly policies.

The initiative is quite different from traditional banking’s approach to cryptocurrency. This is because there has been a rise in financial institutions increasingly embracing digital assets despite the industry’s historical volatility and regulatory challenges.