Singapore Gulf Bank to Sell 10% Equity to Raise Capital for a Stablecoin Payments Firm Buyout

According to a Bloomberg report on November 25, the bank plans to secure the capital by selling up to 10% of its equity by early 2025,  citing anonymous sources familiar with the matter. It was reported that discussions are already underway with a Middle Eastern sovereign wealth fund and other potential investors.

The funds raised will be directed toward accelerating product development, expanding the bank’s payment network, and hiring additional talent. According to the report, the bank wants to acquire a stablecoin payments firm located in the Middle East or Europe.

Singapore Gulf Bank is a digital-first financial institution established by Singapore’s Whampoa Group in 2023. It combines traditional finance and cryptocurrency services on a single platform and plans to launch its services by the end of this year.  The bank is also backed by Bahrain Mumtalakat Holding Co. and licensed in Bahrain.

This development aligns with the growing global adoption of stablecoins by financial institutions, largely due to their value stability because they are often pegged to fiat currencies like the U.S. dollar. Banks such as Thailand’s Siam Commercial Bank and Japan’s Mitsubishi UFJ Financial Group have already introduced their own stablecoin initiatives.

Notably, stablecoin issuer Paxos partnered with Singaporean banking giant, DBS Bank, to launch its latest stablecoin offering, Global Dollar (USDG). The stablecoin is backed 1:1 by the U.S. dollar and operates on the Ethereum blockchain. Notably, it was certified compliant by the Monetary Authority of Singapore (MAS) in July. Paxos noted it has plans to make USDG on other platforms. 

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