The Gibraltar Stock Exchange (GSX) Group yesterday announced the successful deployment of an online stock exchange prototype that included a test bond issuance on the Global TestNet’s Securities Trading Asset Classification Settlement (STACS) Network.
The prototype is based on the Distributed Ledger Technology (DLT) used by the STACS Network to meet the needs of capital markets. The network is a new iteration of a scalable ledger network layer meant to seamlessly integrate with the existing infrastructure used by financial institutions to facilitate the tokenization of this massive industry.
Nick Cowan
The Founder and CEO of the GSC Group, Nick Cowan, commented:
Our vision at GSX has been to revolutionize 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 demonstrated its ability to issue the bon on STACS, monitor selling reports, implement eligibility and selling restrictions and allocate repayments through the use of smart contracts. The successful demo bond issue is a major milestone in GSX’s goal to create a market where digital securities are issued, traded and cleared on a blockchain network. The company promised that more capabilities and other types of digital assets will be added to the GSX prototype.
The STACS Network was created by Hashstacs Inc. (Hashstacs) through a joint venture with the GSX Group, Primelink Technology Co. Ltd, and Chong Sing Fintech Holdings Ltd. The successful launch of its prototype has allowed Hashstacs to embark on the next stage, which is the deployment of a pilot project of the prototype.
The STACS Network is a unique system that is tailored to the needs of financial institutions given that its DLT technology is compatible with the double entry accounting method and the Unspent Transaction Output (UTXO), which are critical tools in the financial services industry.
The network also allows the full customization of these tools to meet the unique needs of each financial institution. It also has native support for KYC/AML protocols and its smart contracts are based on both Solidity and JavaScript. STACS processed over 10,000 transactions per second during the testing period.
Hashstacs’ Managing Director, Jay Ng 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.