Singapore Gulf Bank Plans to Raise $50 Million and Acquire Stablecoin Firm
Singapore Gulf Bank (SGB) aims to raise at least $50 million in a funding round to enhance its position in the digital asset ecosystem. The bank plans to sell a 10% equity stake by early 2025 to support this initiative.
Operated by the Singapore-based Whampoa Group, SGB has received operational license approval in Bahrain, strengthening its presence in a region increasingly adopting cryptocurrency.
According to a report, SGB is negotiating with a Middle Eastern sovereign wealth fund and other investors to secure the necessary funds. Proceeds will be allocated for product development, enhancing the payment network, and recruiting skilled talent to scale operations.
SGB also plans to acquire a stablecoin payments company, focusing on firms in the Middle East or Europe, with the acquisition expected in Q1 2025. This aligns with the bank’s goal of serving global investors, institutions, and innovators.
Middle East’s Crypto Ecosystem Thrives
Bahrain is emerging as a significant player in the Middle Eastern cryptocurrency sector due to its crypto-friendly policies that promote innovation and competition within the blockchain space.
SGB's expansion strategy in Bahrain reflects the growing trend of cryptocurrency adoption in the Middle East. A September report from Chainalysis indicates that the Middle East and North Africa (MENA) region accounts for 7.5% of global cryptocurrency transactions, with the UAE having the third-highest crypto adoption rate worldwide, according to the Henley Crypto Adoption Index 2024.
A research study by Bitget revealed a 166% year-over-year increase in daily cryptocurrency traders in the Middle East, driven by favorable regulations, rising asset valuations, and governmental efforts to establish a crypto hub. However, geopolitical tensions pose challenges, potentially affecting financial markets.
SGB’s strategic initiatives demonstrate its commitment to becoming a digital banking leader, integrating traditional finance with emerging Web3 technologies. By targeting a stablecoin payments firm and expanding in a progressive crypto region, SGB positions itself as a key player in the evolving financial landscape.