GSTechnologies Ltd (LON:GST), the fintech and information technology solutions company, has provided an update in relation to recent developments regarding the Company’s implementation of its stated strategy.
As previously announced, the Company is working, via a collaboration agreement with Wise MPay Pte Ltd, to roll-out a suite of offerings under its GS Money banner based on three initial use-cases: international money transfers, borderless accounts, and private stablecoin.
AngraFX and GS Money Stablecoins
Following the completion of the acquisition of Angra Limited (“Angra”), a UK-based foreign exchange and payment services company, announced on 8 March 2022, Angra has been successfully integrated within the Group. Angra, which operates under the AngraFX brand name, is an established Financial Conduct Authority approved Authorised Payment Institution (“API”), conducting fast, secure, and low-cost foreign exchange business and payment services internationally, the first pillar of GS Money. Following the completion of the acquisition, Angra is trading in line with the GST Board’s expectations.
The Group is also making significant progress with the other elements of its GS Money strategy. Under the collaboration agreement with Wise MPay, the Company is working, inter alia, to operate a full service stablecoin payment infrastructure to enable customers to transact using stablecoins. The stablecoin payment infrastructure, the second pillar of GS Money, has now been successfully tested using all four of the enterprise chains through the company’s wholly owned GS Fintech subsidiaries.
Following this successful testing, the Company has identified the following activities that it plans to carry out:
· Issuing four single fiat-linked stablecoins – the “GUSD”, “GGBP”, “GEUR” and “GRMB” – pegged to the US Dollar, the Pound, the Euro and the Yuan respectively;
· Managing the 1:1 reserve assets that are backing the value of the four stablecoins;
· Authorising or verifying the validity of transactions and records;
· Providing Software-as-a-service (“SaaS”) and IT support to facilitate access of participants to the network/underlying infrastructure;
· Ensuring the correct and final settlement of the transactions while limiting counterparty and default risk;
· Managing the four stablecoins on behalf of owners, including the storage of private keys;
· Conducting transactions on behalf of another (i.e. the customer) using the four stablecoins; and
· Purchasing/exchanging the four stablecoins with fiat money.
The Company is aware of the regulatory treatment of GS Money’s stablecoins and is exploring the possibility of providing the proposed services in strategic jurisdictions, including the UK.
Glindala
The Company announced on 22 January 2002, that it had entered into a legally binding sale and purchase agreement to acquire the whole of the issued share capital of UAB Glindala (“Glindala”), a holder of a Crypto Currency Exchange Licence registered in Lithuania. As previously announced Glindala’s Crypto Currency Exchange Licence is supervised by the Lithuanian Financial Crime Investigation Service (“FCIS”). Completion of the acquisition is subject only to the approval of the FCIS and the Company understands that approval will be granted shortly upon the completion of certain administrative matters by the Lithuanian authorities. The Company believes the exchange will be a significant enabler for its GS Money stablecoin business, forming the third pillar for GS Money, and will integrate well with Angra and its other activities.
Tone Goh, Chairman of GSTechnologies, commented : “The outlook for our blockchain enabled neobanking business continues to be positive as the Company continues to make significant progress with AngraFX and its other GS Money activities.
“Additionally, we look forward to concluding the acquisition of Glindala shortly, to further strengthen the Group’s offerings. We look forward to providing further updates in due course as we continue to progress.”
