Whampoa Group to set up digital bank in Bahrain

WHAMPOA Group announced on Thursday (May 18) that it will set up a digital bank in Bahrain to support the growth of the digital-assets industry.

The bank, expected to be established by the end of this year, will serve institutions, innovators and investors around the world, said the Singapore-based investment group. It added that it plans to offer digital banking services and the trading, custody and asset management of digital assets.

“We were impressed by Bahrain’s solid reputation in the financial services sector, transparent regulatory framework, and ongoing pledge to collaborate and innovate,” said Shawn Chan, Whampoa’s group chief executive officer.

Contributing 17.5 per cent to Bahrain’s gross domestic product, the financial service sector is the highest contributor to the kingdom’s economy.

Bahrain was among the first countries to issue crypto-asset licences in the Middle East, cementing itself as a “leading hub for crypto services and fintech innovations in the region”, said Whampoa.

Khalid Humaidan, chief executive of the Bahrain Economic Development Board, said the establishment of a digital bank “directly aligns” with the kingdom’s economic recovery plan, which “prioritises digitisation across the financial services sector”.

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Chan added that the long-term outlook for digital assets “remains bright” as blockchain and other Web 3.0 technologies continue to “drive the next evolution of the Internet”. He noted that the number of crypto users, currently estimated at 230 million, is slated to grow to a billion by 2030, with three-quarters of merchants expected to accept cryptocurrency payments within the next two years.

Whampoa is a private multi-family office set up by a member of the family of late businessman and philanthropist Lee Kong Chian.

In 2022, the group set up Whampoa Digital as it set its sights on digital-asset investing. Whampoa Digital envisions four pillars in its strategy: a public-market fund to trade digital assets including crypto; a private-market fund investing via the venture or private equity route; incubator services; and research and advisory.