Singapore Gulf Bank plans $50M funding for stablecoin deal

Singapore Gulf Bank, a digital bank under the Whampoa Group, is reportedly seeking to raise $50 million through the sale of a 10% equity stake by early 2025.  

The funds are intended to support the acquisition of a stablecoin payments firm and expand the bank's product development.  

According to Bloomberg, the bank is in discussions with a Middle Eastern sovereign wealth fund and other investors.  

The capital will be used to enhance its payment network and bolster talent acquisition efforts.  

Singapore Gulf Bank aims to acquire a stablecoin payments company in either the Middle East or Europe by the first quarter of 2025.  

When approached, a spokesperson for Singapore Gulf Bank declined to confirm the reports, stating that it is the company’s “policy of not discussing ongoing strategic initiatives.”  

The Middle East remains a focal point for crypto-related investments, with Bahrain, Dubai, and Abu Dhabi among the most active in the Web3 ecosystem.  

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

Notably, 93% of transaction volume in the region involves amounts exceeding $10,000, indicating institutional and large-scale activity.  

The report also highlighted the growing interest in decentralised platforms in the UAE and Saudi Arabia.  

The UAE has recently taken steps to bolster crypto security by approving a custodial insurance product to protect against losses from hacks, fraud, and storage issues.