Solowin in talks to acquire US banking license through affiliate

HONG KONG - Solowin Holdings (NASDAQ:SWIN), a financial services firm with a market capitalization of approximately $199 million, announced Tuesday it is in advanced negotiations to acquire a U.S.-licensed financial institution through a designated affiliate, according to a company press release. According to InvestingPro, the company’s stock has shown remarkable momentum, surging over 226% in the past six months.

The proposed transaction is structured as a clean-charter acquisition, with all legacy assets and liabilities to be removed before closing, providing Solowin with a regulated banking platform.

If completed, the acquisition would enable the Hong Kong-based financial services firm to offer international banking services including deposit-taking, lending, and payment processing within the U.S. tax framework.

"The potential acquisition of a U.S.-licensed banking institution would be a game-changer for Solowin," said Peter Lok, Chairman and CEO of Solowin. "It represents the next logical step in our global compliance puzzle."

The company stated the banking license would enhance its global payment infrastructure with more efficient fiat on/off-ramps and settlement capabilities, facilitate the issuance of tokenized real-world assets, and provide a regulated platform for custody and wealth management.

Solowin, which operates through Hong Kong Securities and Futures Commission licensed subsidiaries with digital asset capabilities, noted the acquisition remains subject to execution of a definitive agreement and regulatory approvals.

The financial services firm, founded in 2016, provides solutions across traditional and digital assets, focusing on bridging traditional and decentralized finance through its self-developed platform.

In other recent news, Solowin Holdings has announced several strategic developments. The company has officially launched its Dubai Operations Center and is applying for a Category 3C asset management license from the Dubai International Financial Centre. In addition, Solowin has signed a Memorandum of Understanding with CITIC Contracting Company to co-develop digital infrastructure in Saudi Arabia, focusing on data science, commercial real estate, and logistics parks. The firm also revealed an equity purchase agreement to acquire a 19% stake in Singapore-based GPL Remittance Pte. Ltd., enhancing its foothold in the cross-border payment sector.

Solowin is targeting $1 billion in assets under management for its USD Money Market Real Yield Token by the end of 2025, with partnerships including Standard Chartered and China Asset Management (Hong Kong). Furthermore, the company plans to launch a joint Bitcoin quantitative fund with Singapore-based Antalpha, aiming for $100 million in assets under management. These initiatives underscore Solowin’s expansion efforts and strategic partnerships across various sectors.

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