GSTechnologies signs collaboration agreement with Wise MPay

GSTechnologies Ltd (LON:GST), the integrated information and communication technology infrastructure solutions provider, has announced the signing of a Collaboration Agreement with Wise MPay Pte Ltd, the Singaporean blockchain payment solution provider, with a view to Wise MPay providing the Company with software and services to facilitate the Company’s plans to develop new higher-growth synergistic business areas focussed on blockchain technology, particularly those applicable in the banking and wider financial services sector.  The Agreement builds upon the Memorandum of Understanding between the Company and Wise MPay announced on 21 April 2021.

Background

As previously announced, GST remains focussed on its corporate strategy of operating a profitable information and communications technology (“ICT”) business, serving some of the most respected governmental and private organisations worldwide.  This strategy includes seeking to enable and enhance the current Internet of Things (“IoT”) and ICT offerings through the application of new highly scalable disruptive technologies, in particular enterprise blockchain solutions and services.

Whilst the Company remains focussed on developing the existing business of its wholly owned subsidiary EMS Wiring Systems, the Company’s goal is to also focus on new higher growth synergistic business areas focussed on blockchain technology, particularly those applicable in the banking and wider financial services sector.  The Company’s blockchain technology activities are being led by the Company’s executive directors, Jack Bai and Shayne Tan, with the support of the wider GST team.  Additionally, the Company established earlier this year two wholly owned subsidiaries, GS Fintech Ltd, in UK, and GS Fintech Pte Ltd, in Singapore to facilitate its future plans.

Future plans

Through the collaboration between GST and Wise MPay, underpinned by the Agreement, the Company plans to launch a borderless neobanking platform providing next-generation digital money solutions.  The Company’s neobanking platform, to be named GS Money, is intended to be made up of the following products:

1.    GS Money protocol, a global money protocol for stable digital tokens built on the Coalculus blockchain platform.  The GS Money protocol will be designed to enable companies (regulated money services business, payment processor and merchants) to launch new payment use cases and conduct the wholesale netting of payments between retail payment providers in a trusted and compliant manner.

2.    GSend, a remittance gateway which is initially intended to be launched in the UK.  The GSend electronic bank-to-bank transfer method will be supported by Wise MPay’s banking and financial institution partners, and overseas agent network, currently operating in over 18 countries and in over 20 currencies.  GST are in the process of applying for an Authorised Payment Institution (API) licence in the UK to provide the required approval for this service.

3.    GS Money App, a mobile neobank application offering fee-free cross border payments.  This new payment service is intended to use regulated stablecoins and blockchain-based ‘bank accounts’ to instantly transfer value between US dollars, Sterling, Euros and Chinese Yuan via a mobile device without foreign exchange mark-ups or additional fees.  Once launched, the GS Money App intends to operate as a European Electronic Money Institution (EMI) licenced service, subject to the appropriate approvals being received.  The GS Money App will not follow a banking/lending business model and it will not be engaging in fractional reserve practices as undertaken by banks.  The cash reserve will be transparently managed by an EU registered entity that is yet to be established or acquired.  Every stablecoin token will be backed 1-to-1 with real currency.

Software and services to be supplied under the Agreement

Under the Agreement Wise MPay will supply the Company with a number of standard and bespoke software packages which include, inter alia, software to enable the Company to establish a remittance portal (GSend), an eWallet app (GS Money), Know Your Client (KYC) administration and an encryption engine.

Additionally, Wise MPay will supply four enterprise blockchain consensus nodes that come with 25 million stake tokens each, based on the Coalculus blockchain platform, to enable transaction validation on the Coalculus network for transactions undertaken by GST’s proposed customers in US dollars, Euros, Sterling and Chinese Yuan.

These software packages being supplied by Wise MPay will be integrated on the Company’s cloud server, together with software supplied by the Company and third party payment gateway packages.

Wise MPay has agreed to provide reasonable ongoing support and training to the Company in respect of the software and systems it is supplying, together with software and Coalculus platform upgrades when available.

Consideration for the Agreement

Payment for all the software and services to be provided under the Agreement will be satisfied by the issue of 100,000,000 new ordinary shares in the Company to Wise MPay, subject to the approval of the issue of the New Ordinary Shares by the Company’s shareholders at a General Meeting to be convened in due course.  Additionally, in order for the Company to issue the New Ordinary Shares and for them to be admitted to trading on the Standard Segment of the Official List and on the Main Market of the London Stock Exchange the Company is required to publish a prospectus approved by the Financial Conduct Authority.  The Company has commenced preparation of the required prospectus, which will be submitted to the FCA for approval in due course.

In the meantime the Company and Wise MPay have agreed to work together to progress the Company’s plans and the implementation of the software and services to be provided under the Agreement.  Further announcements will be made as appropriate.

Tone Goh, Chairman of GSTechnologies, commented:  “I am delighted that we have agreed terms with Wise MPay to provide the required software and support to enable the establishment of our planned borderless neobanking platform providing next-generation digital money solutions.  These are exciting times for GST as we endeavour to be at the forefront of the next wave of financial services and I look forward to making further announcements as we progress.”

Click to view all articles for the EPIC:
Or click to view the full company profile:
    Facebook
    Twitter
    LinkedIn

    More articles like this

    The rise of neobanking in India

    Neobanking is one of the major fintech innovations to have come over the last few years, the next evolutionary step in banking after net banking, mobile banking, app-based banking and online payments.  The Indian neobanking ecosystem

    What is neobanking And how does it work?

    Neobanks are digital-only banking platforms that operate solely online. Simply put, they do not have a physical presence. For customers, transactions in traditional banks could require a lot of time and effort. Neobanks promise a seamless

    GSTechnologies completes disposal of EMS Wiring Systems

    GSTechnologies Limited (LON:GST), the fintech and information technology solutions company, has announced that further to the announcement on 18 July 2022, the Company has completed the disposal of its subsidiary, EMS Wiring Systems Pte. Ltd (“EMS”), to

    Online payments and mobile wallet use growing

    The COVID-19 lockdowns may have given an enduring boost to online payments, according to the Reserve Bank of Australia. The bank’s annual Payment Systems Board Annual Report, released on Wednesday, noted the share of online retail

    Should you bank with neobanks?

    Recent years have seen a rise in the popularity of neobanks. In a country where fintech is growing rapidly, Neobank stands out as a key player. The growing popularity of fintech products can be attributed to

    The business case for neobanking

    The neobanking industry is estimated to be worth $300 billion, with 400 neobanks around the world. Despite mass consumer adoption and lots of attention, and capital, from investors, only 5% of neobanks are profitable. Product-market-fit In neobanking

    22% of Irish adults now have neobank accounts

    The number of Irish consumers who have an account with one of the newer primarily online based banks has fallen in the past year, a new analysis has found. According to Finder’s Neobanking Adoption Report, 22%

    UK must ‘break chains’ of regulation to boost neobanks

    The UK government needs to “break the chains” of financial regulation holding back growth at neobanks, according to MPs. A new report from an all-party parliamentary group said the “one-size-fits-all” approach to banking regulation was slowing

    Why eCommerce businesses should use a neobank

    A growing trend in the eCommerce space is the reliance on Neobanks, which function as a digital entity capable of utilizing apps and online platforms to replace traditional physical branches. The rise of neobanks has been

    Neobanking adoption to hit 34% in 2023

    Neobanking adoption is set to boom in the UAE, according to Finder.com’s Neobanking Adoption Report.  The number of adults in the UAE with a neobank account grew to 19% this year, up from 17% in 2021,

    Neobanking is here to stay

    Banks have accompanied the history of humanity for millennia in a hegemonic way. But, due to new technologies, this reality is changing at an accelerated pace. Now it is possible to find new generations of neobanks,

    Druces advises GSTechnologies on sale of EMS Wiring Systems

    Druces’ Corporate and Capital Markets team has advised GSTechnologies Ltd, in connection with an agreement to sell its subsidiary, EMS Wiring Systems Pte. Ltd, to EMS Chairman, Raphael Teo. The binding agreement, dated 17th July, will see