Singapore Pulls Bsquared Crypto License, Tether Acquires SoftBank's XXI Stake

Crypto News

Singapore's central bank stripped Bsquared Technology of its crypto payment licence on Wednesday, ending the firm's authorisation to provide digital payment token services in the city-state after just 16 months of operation. The Monetary Authority of Singapore acted following an on-site inspection that exposed weaknesses in risk management practices, breaches of conflict-of-interest rules and failures to comply with outsourcing guidelines. Regulators said Bsquared, also known as BSQ, submitted false or misleading information on multiple occasions, beginning with its initial licensing application and extending into the on-site review itself. The agency confirmed it is now examining the responsibilities of the company's key officers.

In an unrelated development, Tether International confirmed it has purchased SoftBank Group's entire stake in Twenty One Capital, the publicly traded Bitcoin treasury vehicle led by Strike founder Jack Mallers. SoftBank's representatives exited the company's board upon closing, in line with the shareholder agreement that originally brought the Japanese investment giant in alongside Tether and Cantor Fitzgerald. Twenty One's stock, listed under the XXI ticker, jumped 5.6% in Wednesday's pre-market session to $8.05 following the announcement. Chief executive Paolo Ardoino described the transaction as an expression of conviction in XXI's long-term Bitcoin accumulation strategy and its standing as a flagship public-equity Bitcoin vehicle.

The Bsquared revocation is unusual within Singapore's licensing framework. The Monetary Authority has issued only 37 digital payment token services permits since the regime launched under the Payment Services Act 2019, and outright withdrawals remain rare. Last year, the regulator rejected the application of AmazingTech, the operator of Tokenize Xchange, prompting a subsequent investigation by the Commercial Affairs Department. Bsquared has been ordered to submit a closure certificate from external auditors confirming that all customer funds have been returned, although the firm informed authorities that it held no outstanding client assets at the time of the revocation.

The enforcement action lands against a backdrop of Singapore's continued push to position itself as Asia's leading blockchain and digital asset hub. The city-state hosts regional headquarters for major exchanges including Coinbase and Ripple, alongside the global head office of Crypto.com. Local lenders are increasingly extending into tokenised finance, with Singapore Gulf Bank rolling out new digital asset services and OCBC recently launching a tokenised gold fund deployed across Ethereum and Solana. Regulators have framed strict licensing oversight as compatible with that ambition, signalling that breaches of compliance obligations will trigger swift action regardless of an applicant's prior market positioning.

Twenty One Capital has rapidly emerged as one of the most closely watched corporate Bitcoin treasuries on public markets. The firm currently holds 43,514 BTC, worth roughly $33.7 billion at recent prices, making it the second-largest publicly traded holder of the asset and a meaningful slice of Bitcoin's tradable circulating supply. Only Michael Saylor's Strategy sits ahead, with 843,738 BTC valued at approximately $65.3 billion. The XXI vehicle was structured from inception to anchor a public-equity wrapper around a pure Bitcoin balance sheet, distinguishing it from operating companies that have layered Bitcoin accumulation onto an existing business model.

Tether's deeper commitment to Twenty One follows the stablecoin issuer's proposal last month to combine the listed company with Strike's Bitcoin financial services platform and the miner Elektron Energy in a multi-step merger. Ardoino said SoftBank had brought "credibility, perspective and discipline" during the early formation period and praised the Japanese group's track record of backing transformational technology companies. The Tether chief described XXI as one of the most significant opportunities to construct a public company entirely around Bitcoin from the ground up, with the consolidation roadmap arriving as the current bull market intensifies competition for institutional flows.

Wednesday's developments highlight the two forces dominating crypto this cycle: tightening regulatory oversight in established jurisdictions and accelerating institutional concentration on Bitcoin balance sheets. Singapore's willingness to revoke a licence over governance failures signals that hub status will not shield non-compliant operators, while Tether's expanded ownership of a leading public Bitcoin treasury reflects the steady migration of corporate capital into hard digital assets rather than the broader altcoin complex. The combined picture suggests that 2026's market structure is being shaped less by retail speculation and more by regulators, large allocators and treasury-focused public vehicles.