Sheng Ye Capital Ltd. has formed a consortium with Phillip Capital (USA) Pte Ltd. and fintech company Advance.AI that is looking to secure a digital wholesale bank license in Singapore, The Business Times reported Jan. 6, citing Sheng Ye Capital's founder, Jeff Tung.

The move comes after Beijing Byte Dance Telecommunications Co. Ltd., owner of video app TikTok, joined the race for a digital banking license in the city-state. iFAST Corporation Ltd. and Ant Financial Services Group-led consortiums are also in the running to win a digital banking license, while Grab Holdings Inc. and telecommunications provider Singtel have also teamed up to apply for a digital full banking license.

In addition, a consortium led by V3 Group Ltd. and stored-value card company EZ-Link Pte Ltd. has submitted an application to the Monetary Authority of Singapore for a full digital banking license, Bloomberg News reported Jan. 5, citing a statement.

The consortium also includes Heliconia Capital Management Pte. Ltd., MSIG Insurance (Singapore) Pte Ltd., Far East Organization Pte. Ltd. and the Singapore Business Federation.

In June 2019, the Monetary Authority of Singapore announced plans to issue up to five new digital bank licenses, offering up to two digital full bank licenses and up to three digital wholesale bank licenses. The regulator is expected to announce which applicants will be rewarded the licenses in mid-2020.