Singapore-based Whampoa Group, a family office with connections to some of the city-state’s most influential families, recently announced plans to open a digital bank in Bahrain. Scheduled to launch by the end of the year, the institution is already garnering considerable interest, thanks in part to the global client base it intends to target. Amid the growing adoption of digital banking services and the expanding influence of digital assets, the new bank is expected to offer a range of innovative, groundbreaking services.
Among its planned offerings are digital asset trading, custody, and management services, making it an appealing option for those intrigued by the potential of cryptocurrencies and similar technologies. The Central Bank of Bahrain has already given its conditional approval to the project, subject to the fulfillment of various requirements.
Whampoa Group has ties to two significant Singaporean Lee families, including Amy Lee, the niece of well-known statesman Lee Kuan Yew, and Lee Han Shih, who is associated with the Singaporean multimedia conglomerate Potato Productions. In recent years, the Whampoa Group has extended its influence and engaged in multiple high-profile deals.
According to the Whampoa Group’s LinkedIn page, the company’s digital banking subsidiary, Whampoa Digital, was formed in 2021. It participated in the $500 million investment fund created by Binance Labs, the venture capital arm of the sprawling cryptocurrency exchange. Furthermore, Whampoa announced its own $100 million venture capital fund to support Web3 startups last September. The group also holds investments in ByteDance, the parent company of TikTok.
As a rapidly growing market for cryptocurrency, the Middle East and North Africa region is an ideal location for Whampoa Group’s new digital bank. The company’s CEO, Shawn Chan, cited Bahrain’s excellent reputation in the financial services sector, as well as its transparent regulatory framework and commitment to innovation, as reasons for choosing the kingdom as the bank’s base.
Prior to Whampoa Group’s entrance into the Bahraini market, Binance had received a license to operate in the kingdom in March 2022. Moreover, local payment platform EazyPay had partnered with Binance Pay in October that same year, enabling crypto payments at over 5,000 points of sale across the country. CoinMENA, a Shariah-compliant cryptocurrency exchange, also calls Bahrain home.
While some may argue that the proliferation of digital banks and cryptocurrencies could destabilize traditional finance, this development signals a broader push toward financial innovation and accessibility. Ultimately, the success of Whampoa Group’s new digital bank in Bahrain may help determine the future of fintech in the region, offer new opportunities for businesses and investors, and set the stage for similar projects around the world.
Source: Cointelegraph
