Singapore Gulf Bank is reportedly planning to acquire a stablecoin payments provider and is seeking investments to fund this move, Bloomberg reports.
Sources indicate the Bahrain-licensed bank is aiming to secure at least US$50 million by selling a minority stake, likely below 10%, to a Middle Eastern sovereign wealth fund and other investors.
This equity raise, expected to be finalised in early 2025, will primarily support the bank’s expansion efforts.
These include enhancing its existing product offerings, broadening its payment network, and growing its team.
The acquisition itself is projected to occur within the first quarter of next year, with the bank primarily considering targets located in the Middle East or Europe.
Singapore Gulf Bank, founded by Whampoa Group and supported by Bahrain’s sovereign wealth fund Mumtalakat, provides a platform for businesses to manage both traditional and digital assets.
The bank intends to extend this service to individual clients by year-end.
The pursuit of a stablecoin payments company underscores the bank’s focus on leveraging the growing prominence of these digital assets.
Stablecoins, cryptocurrencies pegged to stable assets like the US dollar, offer advantages in terms of transaction speed, cost efficiency, and accessibility compared to conventional payment rails.
A spokesperson for Singapore Gulf Bank declined to comment on these reported plans.
Featured image credit: Edited from Freepik
