Singapore Gulf Bank targets $50 million for stablecoin payment firm
The funds will be used to enhance product development, expand its payment network, and grow its workforce.
Singapore Gulf Bank is reportedly raising at least $50 million to purchase a stablecoin payments company by early 2025, according to inside sources. While the specific firm remains unnamed, the funds will support the bank’s product development, payment network expansion, and workforce growth.
The startup bank, launched in February 2024 by Singapore’s Whampoa Group and licensed in Bahrain, integrates traditional finance with cryptocurrency. Backed by Bahrain Mumtalakat Holding Co and the Whampoa Group, the bank aims to serve customers by the end of 2024. Discussions are ongoing with a Middle Eastern sovereign wealth fund and other investors to sell an equity stake of under 10% by the first quarter of next year.
Stablecoins, valued for their reliability due to being pegged to fiat currencies like the US dollar, are gaining traction globally. Singapore’s recent regulatory framework for stablecoins sets rigorous standards for issuers to achieve MAS-regulated status, reflecting the city-state’s drive to lead in crypto innovation.