S'pore-based Chocolate Finance suspends instant withdrawals due to ‘high demand’, 3-10 days waiting time for funds

Singapore-based Chocolate Finance has temporarily suspended instant withdrawals due to “high demand”.

The financial services firm announced in a notice on its mobile app on Mar. 10 that the platform is currently experiencing an unusually high volume of withdrawal requests.

It will take three to 10 days for withdrawals made during this period to reach users’ accounts.

The withdrawal requests cannot be cancelled once confirmed.

Started in July 2024

The company was set up in July 2024 and specialises in services catered to Singaporeans who have an appetite for better returns via investment opportunities.

It was founded by Walter de Oude, who also started Singlife in 2014.

In February 2025, Chocolate Finance had close to S$1 billion in assets under management.

Not a bank

According to Chocolate Finance, it is not covered by the Singapore Deposit Insurance Corporation (SDIC) because it is not a bank.

The funds in Chocolate Finance are held separately by custodians, HSBC and State Street, under the management of its fund managers, and ringfenced in the event that anything happens to Chocolate Finance, the firm added.

In their frequently asked questions page, Chocolate Finance says that it allows up to S$20,000 of instantaneous withdrawal a day with its "Chocolate Liquidity Programme".

This is one of the perks touted by the firm for using its services.

Chocolate Finance also said money it holds is invested into a portfolio of fixed-income funds selected to optimise risk-adjusted returns, based on factors like duration, yield to maturity, credit quality and currency.

Portfolio of customers are targeted to get returns of 3.3 per cent per annum for the first S$20,000, and 3 per cent per annum on any amount thereafter.

However, they state that these targets are subjected to change based on market conditions.

"We take no fee and make no money until we deliver the target returns," Chocolate Finance added.

Chocolate Finance is licensed as a fund management service provider by the Monetary Authority of Singapore.

Chocolate Finance response

Chocolate Finance said in response to a request for comments:

During a period of unusually high withdrawal requests, Chocolate Finance has temporarily paused its instant withdrawal and card transaction services.

We want to reassure our customers that Chocolate Finance remains a strong and stable place for your spare cash, and we are here for the long run.

Transparency and customer service are our top priorities, and your funds are always safe.

As a fund manager licensed by the Monetary Authority of Singapore (MAS), we invest in highly liquid, short-term investment-grade bonds, ensuring that customer money is safeguarded under independent custody.

While fund managers do not typically offer instant liquidity for withdrawals, Chocolate’s provides instant withdrawals through its unique liquidity programme, which makes it possible to receive proceeds earlier than usual.

Due to the recent temporary surge in withdrawals, we have paused this programme and reverted to the standard fund redemption process, which takes three to 10 business days to settle.

This pause is not a liquidity issue but a matter of managing our increased transaction volume.

Chocolate card transactions are also temporarily paused as we actively implement measures to manage this volume and expedite the return to normal service.

We commit to providing regular updates to our customers.

If you have concerns, we encourage you to read through our FAQs and our T&Cs via www.chocolatefinance.com.

We appreciate our customers’ patience and remain focused on delivering a secure and rewarding financial experience.

Top photo via Chocolate Finance