Key Takeaways
- The bank also plans to acquire a stablecoin-focused payments company in the first quarter of 2025.
- The targeted acquisition will focus on a company based in the Middle East or Europe
Singapore Gulf Bank has announced plans to raise at least $50 million in an upcoming funding round as part of its strategy to expand its digital finance operations. As per media reports, proceeds from the funding will be allocated to product development, enhancing its payment network, and growing its workforce. Discussions are underway with a Middle East sovereign wealth fund and other investors to sell an equity stake of less than 10%, with the deal expected to close by early 2025.
The bank also plans to acquire a stablecoin-focused payments company in the first quarter of 2025. The targeted acquisition will focus on a company based in the Middle East or Europe, aiming to bolster the bank’s capabilities in blockchain-based payment solutions. Details regarding the acquisition or the bank’s valuation were not disclosed.
Licensed in Bahrain since February 2023 and backed by Bahrain’s sovereign wealth fund Mumtalakat Holding Co. and Singapore’s Whampoa Group, Singapore Gulf Bank has positioned itself as a provider of integrated financial services. Currently, the bank allows corporate clients to manage both traditional and digital financial assets on a single platform. It plans to extend these services to individual customers by the end of 2024.
The announcement comes amid renewed interest in the digital asset sector, driven by a rise in market activity. Since the recent election of Donald Trump as U.S. President, the global crypto market has grown significantly, reaching a valuation of $3.35 trillion. The latest development comes amid reports that Trump is looking at creating a new White House post solely dedicated to crypto policy.
