Singapore Gulf Bank is reportedly planning to acquire a stablecoin payments provider and is seeking investment to fund the move. bloomberg I will report it.
Sources indicate that Bahraini licensed bank is aiming to secure at least US$50 million by selling a minority stake, likely less than 10%, to a Middle Eastern sovereign wealth fund and other investors.
The equity raise is expected to be completed in early 2025 and will primarily support the bank’s expansion efforts.
These include strengthening our existing product offerings, expanding our payment network and expanding our team.
The acquisition itself is expected to take place during the first quarter of next year, with the bank primarily considering targets located in the Middle East or Europe.
singapore gulf bankFounded by Whampoa Group and backed by Bahrain’s sovereign wealth fund Mumtalakat, it provides a platform for businesses to manage both traditional and digital assets.
The bank plans to extend the service to individual customers by the end of the year.
The pursuit of stablecoin payment companies underscores banks’ focus on capitalizing on the growing prominence of these digital assets.
Stablecoins are cryptocurrencies pegged to stable assets, such as the US dollar, and offer advantages in transaction speed, cost efficiency, and accessibility compared to traditional payment rails.
A spokesperson for Singapore Gulf Bank declined to comment on these reported plans.
Featured image credit: Edited from freepic
