Two updates from the Gibraltar Stock Exchange posted today. The first: GSX Group has reportedly successfully deployed a GSX Digital Stock Exchange prototype and a demo bond issuance on the Securities Trading Asset Classification Settlement (STACS) Network’s Global TestNet. Using DLT, the STACS Network, designed for capital markets, represents a new generation scalable ledger network layer that “stacks on top” of existing financial institutions and enables the tokenization of the financial services industry.
“Our vision at GSX has been to revolutionise the current capital markets model by enabling the listing and trading of digital securities. This is the next significant step in a new paradigm for global finance — opening up new liquidity pools and products,” shared GSX CEO and GSX Group Founder Nick Cowan. “The successful demo bond issuance on STACS brings us closer to achieving our goal, as one of the first movers in this nascent technology. The GSX will continue to push the boundaries and advocate for greater adoption, so together we can direct the future of capital markets.”
According to the platform, the GSX Prototype has the capacity to launch the bond on STACS, track selling reports, enforce selling and eligibility restrictions, and distribute repayments using smart contracts. The demo bond issuance brings GSX a step closer to its ambition of enabling the issuance, trading, and clearing of digital securities on the blockchain. Over the coming weeks more features and different classes of digital assets will be developed within the GSX Prototype.
The second update: Hashstacs Inc., which developed the STACS Network, is a joint venture between the GSX Group, Chong Sing Fintech Holdings Ltd., and Primelink Technology Co. Ltd. Through this demonstration of the STACS Global TestNet and GSX prototype, Hashstacs Inc. has embarked on its pilot deployment phase.
“The successful deployment of the STACS Global TestNet and GSX Prototype on the STACS Network is an important milestone in the finance industry’s journey toward a digital asset era,” indicated Hashstacs Managing Director Jay Ng. “We are proud to be spearheading this evolution with the STACS Network, alongside many top-tier, forward-looking institutions. We are excited to broaden our partnership base and encourage companies and institutions to use the Global TestNet and join us on this journey.”
Crowdfund Insider reached out to GSX Group for more detailed insight on these updates. Cowan, Managing Director and Founder of the GSX Group, responded via email,
“At the GSX Group, we want to play a leading role in developing the token economy in an environment built upon good governance and best practices. We have always prided ourselves on our proactive approach, taking large strides towards a new era of finance. Since obtaining a full DLT Licence from the Gibraltar Financial Services Commission (GFSC), the GBX-DAX became the first regulated and insured Digital Asset Exchange to be owned by a traditional stock exchange, the Gibraltar Stock Exchange (GSX).”
Cowan also addressed challenges on the platform and in the sector,
“While challenges and obstacles inevitably arise, keeping an unwavering focus on our overall aim — reformulating economic and capital markets model by enabling the use of DLT (Distributed Ledger Technology) — keeps us moving forward. We plan to continue this progress whilst maintaining our ethos of transparency and good governance, and believe this is precisely the approach that will lead to further uptake of blockchain technology in the fintech industry. This STACS demo bond has brought us one step further to revolutionising capital markets.”
“As for the challenges ahead for the wider blockchain ecosystem, developing a robust education offering on a global level will be hugely important in nurturing the next generation of blockchain-literate professionals.”
And readers know that I cannot resist asking about book recommendations!
“I’m currently reading Vietnam – An Epic Tragedy, 1945-1975 by Max Hastings,” shared Cowan.