Singapore Gulf Bank is targeting a stablecoin payments firm acquisition to enhance its digital asset offerings.
Singapore Gulf Bank (SGB) has set its sights on raising at least $50 million in a funding round as it plans to strengthen its foothold in the digital asset ecosystem. According to sources cited by Bloomberg, the bank intends to sell a 10% equity stake by early 2025 to support this ambitious endeavor.
Operated by the Singapore-based Whampoa Group, SGB recently received operational license approval in Bahrain, further cementing its presence in the Middle East, a region rapidly embracing cryptocurrency adoption.
As per the report, the banking giant is in talks with a Middle Eastern sovereign wealth fund and other potential investors to secure the funds. The capital raised will be allocated to improve product development, bolster the payment network, and recruit top-tier talent to scale its operations effectively.
In addition to its fundraising efforts, SGB plans to acquire a stablecoin payments company, with a focus on firms based in the Middle East or Europe. This reported acquisition, anticipated to take place in Q1 2025, aligns with the bank’s vision to cater to global investors, institutions, and innovators.
Middle East’s Crypto Ecosystem Thrives
Bahrain, where SGB has a growing presence, is emerging as a key player in the Middle Eastern cryptocurrency sector. Known for its crypto-friendly policies, the country has actively fostered innovation and competition within the blockchain space.
The bank’s strategy to expand in Bahrain reflects the broader trend of rising crypto adoption across the Middle East. A September report from Chainalysis highlights that the Middle East and North Africa (MENA) region accounts for 7.5% of global cryptocurrency transactions. Among these nations, the UAE stands out as a leader, boasting the third-highest crypto adoption rate worldwide, according to the Henley Crypto Adoption Index 2024.
In April, research by Bitget revealed a staggering 166% year-over-year growth in daily cryptocurrency traders within the Middle East. This massive growth in the region is a result of favorable regulations, rising asset valuations, and the government’s push to become a crypto hub. However, geopolitical tensions remain a challenge, with experts warning of its potential impacts on financial markets.
Singapore Gulf Bank’s strategic moves reflect its commitment to becoming a digital banking powerhouse, bridging traditional finance with emerging Web3 technologies. By targeting a stablecoin payments firm and expanding in a region recognized for its progressive stance on cryptocurrency, SGB positions itself as a key player in the evolving financial landscape.
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