A lot of banks are now going after stablecoins as it has become a very popular choice because of the reliability of its value, as it is pegged to fiat currencies and mostly to the U.S. dollar.
The Siam Commercial Bank of Thailand as well as Mitsubishi UFJ Financial Group of Japan have so far introduced stablecoin trials.
The Monetary Authority of Singapore has just completed a regulatory framework for single-currency stablecoins.
On November 25, a prestigious media outlet, Bloomberg reported that Singapore Gulf Bank is planning to buy a stablecoin payment company, as per an inside source who doesn’t want to reveal his identity. Although the details about that stablecoin firm are still not clear.
The funds accumulated by the firm will help boost product development, intensifying the payment network of the bank, and hiring more staff, as revealed by the inside source. The bank has so far contacted a Middle Eastern sovereign wealth fund along with many investors who wish to sell an equity stake of not more than 10% by Q1 of the next year.
The Singapore Gulf Bank
In February 2024, the Singapore Gulf Bank was set up by the multi-family office of Singapore, Whampoa Group. The firm works in the field of managing traditional finance and crypto at the same time and has plans to offer the services to the users before the commencement of the next year.
The newly established bank is said to be supported by the sovereign wealth fund Bahrain Mumtalakat Holding Co. and the Whampoa Group. A lot of banks are now going after stablecoins as it has become a very popular choice because of the reliability of its value, as it is pegged to fiat currencies and mostly to the U.S. dollar.
The Siam Commercial Bank of Thailand as well as Mitsubishi UFJ Financial Group of Japan have so far introduced stablecoin trials. Many countries are working on developing crypto hubs and laws that safeguard investors and companies offering blockchain technology and other related services.
The new regulatory framework
The Monetary Authority of Singapore has just completed a regulatory framework for single-currency stablecoins. The law is applicable to non-bank issuers of single currency stablecoins associated with the Singapore dollar or any G10 currencies if the overall value goes over $5 million SGD or is equal to $3,567 USD.
The regulatory framework includes some points such as the requirement for value stability, capital redemption at par as well as unveiling of audit results to users. The stable issues who will fulfill the mentioned criteria can apply to the agency for receiving the status of “MAS-regulated stablecoins.”