The crypto-friendly digital bank, Singapore Gulf Bank, is reportedly seeking a $50 million fund injection as it aims to acquire a stablecoin payments company in 2025.
On Nov. 25, Bloomberg reported that Singapore Gulf Bank plans to sell 10% of its equity by early 2025 to raise the required funds, citing anonymous sources familiar with the matter.
The bank, run by the Singapore-based Whampoa Group, recently obtained operational license approval in Bahrain.
A spokesperson for Singapore Gulf Bank declined to comment on the speculation, stating the company’s “policy of not discussing ongoing strategic initiatives” in a statement to Cointelegraph.
Giving up equity for growth
According to unnamed sources, the bank is negotiating with a Middle East sovereign wealth fund and other investors to sell the equity stake.
The funds will reportedly be used to enhance product development, upgrade its payment network, and attract new talent.
The bank also plans to acquire a stablecoin payments firm in the Middle East or Europe by the first quarter of 2025.
Currently, Bahrain, Dubai, and Abu Dhabi are among the most active investors in the Middle East’s Web3 ecosystem.
A September report from Chainalysis revealed that the Middle East and North Africa (MENA) region accounts for 7.5% of all global cryptocurrency transactions.
Breakdown of value received in the Middle East and North Africa region by transaction size. Source: Chainalysis
Middle East’s contribution to crypto adoption
The report highlighted that 93% of transactions involved $10,000 or more, overshadowing small retail investors, who represent only 1.8% of the region’s transaction volume.
While on-chain activity is mostly conducted through centralized exchanges, the UAE and Saudi Arabia have shown “high interest” in decentralized platforms.
Additionally, the UAE’s central bank recently approved a custodial insurance product to protect financial institutions and clients from losses caused by hacks, fraud, and infrastructure damage.
