Stablecoin Payments Company Acquisition and Funding Round by Singapore Gulf Bank
Funding Round and Acquisition Plans
Singapore Gulf Bank, a startup bank licensed in Bahrain, is seeking to raise at least US$50 million in a funding round, according to people with direct knowledge of the matter. The bank is in talks with a Middle East sovereign wealth fund and other investors to sell an equity stake of less than 10% by early 2025. The proceeds will primarily go towards accelerating product development, enhancing the bank’s payment network, and hiring more staff.
Stablecoin Usage and Expansion
The bank is planning to acquire a stablecoin payments company in the first quarter of 2025, with options in the Middle East or Europe. Stablecoins are crypto tokens pegged to fiat currencies, typically the US dollar, and offer speed, cost, and accessibility advantages over regular banking payment rails. The bank’s expansion plans are driven by growing interest in digital assets and the development of crypto hubs globally.
Regulatory Environment
The value of the crypto market has climbed by about US$1 trillion since the US presidential election in November, and some commentators expect a pickup in deal-making to ensue in coming months. The growing optimism about the digital-asset sector is also driven by the promise of supportive industry regulations under President-elect Donald Trump.
Singapore Gulf Bank’s Plans
Singapore Gulf Bank allows companies to manage traditional financial and digital assets on a single platform and plans to extend the service to individuals by the end of this year. The bank is backed by sovereign wealth fund Bahrain Mumtalakat Holding as well as Whampoa Group. Crypto businesses have sometimes struggled to access the banking sector due to the industry’s volatility and history of scandals. However, the icy reception is thawing as more financial centres roll out dedicated rulebooks.
Conclusion
Singapore Gulf Bank’s funding round and acquisition plans demonstrate the growing interest in digital assets and the development of crypto hubs globally. The bank’s expansion plans, including the acquisition of a stablecoin payments company, will enable it to accelerate product development and enhance its payment network.
Frequently Asked Questions
Q: What is the purpose of the funding round?
A: The funding round will be used to accelerate product development, enhance the bank’s payment network, and hire more staff.
Q: Who is the target of the acquisition?
A: The bank is planning to acquire a stablecoin payments company in the first quarter of 2025, with options in the Middle East or Europe.
Q: What is the value of the crypto market since the US presidential election?
A: The value of the crypto market has climbed by about US$1 trillion since the US presidential election in November.
Q: What is the regulatory environment like for digital assets?
A: The growing optimism about the digital-asset sector is driven by the promise of supportive industry regulations under President-elect Donald Trump, and the value of the crypto market has climbed by about US$1 trillion since his election.
