Kraken parent company Payward has partnered with Singapore Gulf Bank (SGB) to launch 24/7 US dollar settlement services for select institutional clients across Asia and the Gulf region. The integration utilizes SGB Net, a real-time clearing network operated by the Bahrain-regulated bank, allowing these clients to settle transactions instantly rather than waiting for traditional banking hours. According to a Monday press release, both companies intend to expand this service to additional clients and currencies in the future.
Beyond settlement infrastructure, the partnership grants SGB access to digital asset liquidity through Payward’s prime brokerage service, Kraken Prime. In the coming months, SGB will also utilize Payward’s markets to price customer trades. This development occurs as major financial institutions accelerate efforts to modernize settlement timelines. For instance, a consortium including JPMorgan Chase, Bank of America, and Barclays plans to launch a tokenized deposit network via The Clearing House in the first half of 2027. Similarly, Circle and Nomura are reportedly partnering to offer instant foreign exchange settlement in Japan starting in 2027, while the Bank of Korea unveiled a pilot project on September 21 to allow off-hours won settlements for foreign investors.
The collaboration between Payward and Singapore Gulf Bank highlights a strategic convergence where crypto-native infrastructure providers supply critical liquidity and settlement rails to regulated banking entities. By integrating SGB Net for real-time clearing, Payward effectively bridges the gap between traditional banking constraints and the demand for continuous market access among institutional players in high-growth regions like Asia and the Gulf. This move suggests that banks are increasingly willing to leverage external prime brokerage capabilities to meet client expectations for speed and efficiency, rather than building such complex systems entirely in-house.
From a regulatory and operational standpoint, the use of a Bahrain-regulated bank’s network to facilitate USD settlement introduces specific jurisdictional considerations regarding cross-border compliance and counterparty risk. While the expansion into digital asset liquidity via Kraken Prime offers banks new revenue streams, it also exposes them to the volatility and structural nuances of crypto markets. Institutions must carefully navigate the interplay between traditional fiat settlement guarantees and the emerging frameworks governing digital asset pricing, ensuring that their participation in these hybrid models aligns with evolving global standards for anti-money laundering and transaction transparency.
