Gibraltar Stock Exchange Deploys Blockchain For Bond Issue


The Gibraltar Stock Exchange (GSX) Group has 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 Distributed Ledger Technology (DLT), the STACS Network is designed for capital markets. It is a new generation scalable ledger network layer that seamlessly stacks on top of existing financial institutions and enables the tokenisation of the financial services industry.

Nick Cowan, CEO of the GSX and Founder of the GSX Group, said, “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. 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.”

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.

Hashstacs Inc. (Hashstacs), 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 STACS Network is built specifically to meet the unique requirements of financial institutions. The Distributed Ledger Technology supports both Unspent Transaction Output (UTXO) and the double entry accounting method used in finance. Unique customisable consensus logic and innovative node design allow full customisation according to each financial institution’s requirements. STACS natively supports KYC/AML requirements and the use of smart contracts on both JavaScript and Solidity. The Network has achieved more than 10,000 transactions per second during testing.

Jay Ng, Managing Director at Hashstacs, said, “We are extremely excited about the achievement today. 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. 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.”

Source: GSX

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