GSTechnologies Limited (LON:GST), the fintech and information technology solutions company, has announced that the Company has entered into a legally binding Sale and Purchase Agreement to acquire the whole of the issued share capital of UAB Glindala, a holder of a Crypto Currency Exchange Licence registered in Lithuania, for a total cash consideration of €27,500.
Glindala’s Crypto Currency Exchange Licence is supervised by the Lithuanian Financial Crime Investigation Service (“FCIS”) and it covers two types of crypto activities, cryptoasset exchange services, both crypto-fiat and crypto-crypto, and cryptoasset depository wallet services, including generating and storing encrypted client keys. Completion of the Acquisition is subject only to the approval of the FCIS.
Assuming the FCIS approve the change of control, GST plans to utilise Glindala to launch a full-service cryptoasset exchange, and to integrate the GS Money digital currencies onto this exchange. Existing readily available technology and software will be brought in run the exchange, which is expected to significantly lower the investment and operating costs borne by the Company. The Company is targeting the crypto exchange being open for retail and institutional participation in the second quarter of 2022.
In line with its stated strategy, the Company’s principal business model for the GS Fintech subsidiaries remains to roll out GS Money based on three initial use-cases: international money transfers, borderless accounts, and private stablecoin. The Company believes the exchange will be a significant enabler for its GS Money stablecoin business.
Tone Goh, Chairman of GSTechnologies, commented: “Through the Acquisition we intend to build upon our expertise in blockchain technology and expand our fintech business by means of cryptoasset trading and wallet management services. By having access to a full-service crypto exchange, we will be able to provide customers with access to our planned GS Money digital currencies, in addition, customers will also be able to use our exchange to trade some of the most valuable cryptoassets in the world, including Bitcoin, Ethereum, and others.”