The Whampoa Group, a family office based in Singapore, has announced its plans to establish a digital bank in Bahrain, according to the kingdom's Economic Development Board. The group aims to launch the bank by the end of the year and intends to cater to a global client base.
The forthcoming digital bank will offer various digital banking services, including digital asset trading, custody, and management. Bloomberg reports that the Central Bank of Bahrain has granted the bank "in-principle approval," which is contingent upon meeting all the necessary requirements.
Whampoa Group's digital asset arm was initiated in 2021 and has already made significant moves in the crypto space. It invested in a $500 million fund created by Binance Labs, the venture capital arm of the popular cryptocurrency exchange, and also holds investments in ByteDance, the parent company of the social media platform TikTok.
The establishment of the digital bank in Bahrain aligns with the Whampoa Group's expansion plans. The Middle East and North Africa region has been identified as the fastest-growing crypto market in the world, according to a report by Chainalysis.
Whampoa Group CEO Shawn Chan highlighted Bahrain's strong reputation in the financial services sector, transparent regulatory framework, and commitment to collaboration and innovation as key factors behind the decision to choose the kingdom for this initiative.
Bahrain has been proactive in embracing the crypto industry. Binance obtained a license to operate in Bahrain in March 2022, and a local payment platform called EazyPay partnered with Binance Pay in October, enabling the use of cryptocurrencies at over 5,000 points of sale in the country. Furthermore, Bahrain is home to CoinMENA, a Shariah-compliant cryptocurrency exchange.
The Whampoa Group's digital bank venture in Bahrain represents a significant step in expanding its presence in the digital asset and cryptocurrency space. With its strategic location and favorable regulatory environment, Bahrain is poised to become a hub for innovative financial services in the region.
