REG - GSTechnologies Ltd - Corporate Update

GSTechnologiesAnnouncement

30/06/2022 07:16

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RNS Number : 7133Q  GSTechnologies Ltd  30 June 2022

30 June 2022

GSTechnologies Limited

("GST" or the "Company" or the "Group")

Corporate Update

 

GSTechnologies Limited (LSE: GST), the fintech and information technology
solutions company, is pleased to provide an update in relation to recent
developments regarding the Company's implementation of its stated strategy.

As previously announced, the Company is working, via a collaboration agreement
with Wise MPay Pte Ltd ("Wise MPay"), to roll-out a suite of offerings under
its GS Money banner based on three initial use-cases: international money
transfers, borderless accounts, and private stablecoin.

AngraFX and GS Money Stablecoins

Following the completion of the acquisition of Angra Limited ("Angra"), a
UK-based foreign exchange and payment services company, announced on 8 March
2022, Angra has been successfully integrated within the Group.  Angra, which
operates under the AngraFX brand name, is an established Financial Conduct
Authority ("FCA") approved Authorised Payment Institution ("API"), conducting
fast, secure, and low-cost foreign exchange business and payment services
internationally, the first pillar of GS Money.  Following the completion of
the acquisition, Angra is trading in line with the GST Board's expectations.

The Group is also making significant progress with the other elements of its
GS Money strategy.  Under the collaboration agreement with Wise MPay, the
Company is working, inter alia, to operate a full service stablecoin payment
infrastructure to enable customers to transact using stablecoins.  The
stablecoin payment infrastructure, the second pillar of GS Money, has now been
successfully tested using all four of the enterprise chains through the
company's wholly owned GS Fintech subsidiaries.

Following this successful testing, the Company has identified the following
activities that it plans to carry out:

·    Issuing four single fiat-linked stablecoins - the "GUSD", "GGBP",
"GEUR" and "GRMB" - pegged to the US Dollar, the Pound, the Euro and the Yuan
respectively;

·    Managing the 1:1 reserve assets that are backing the value of the
four stablecoins;

·    Authorising or verifying the validity of transactions and records;

·    Providing Software-as-a-service ("SaaS") and IT support to facilitate
access of participants to the network/underlying infrastructure;

·    Ensuring the correct and final settlement of the transactions while
limiting counterparty and default risk;

·    Managing the four stablecoins on behalf of owners, including the
storage of private keys;

·    Conducting transactions on behalf of another (i.e. the customer)
using the four stablecoins; and

·    Purchasing/exchanging the four stablecoins with fiat money.

The Company is aware of the regulatory treatment of GS Money's stablecoins and
is exploring the possibility of providing the proposed services in strategic
jurisdictions, including the UK.

Glindala

The Company announced on 22 January 2002, that it had entered into a legally
binding sale and purchase agreement to acquire the whole of the issued share
capital of UAB Glindala ("Glindala"), a holder of a Crypto Currency Exchange
Licence registered in Lithuania.  As previously announced Glindala's Crypto
Currency Exchange Licence is supervised by the Lithuanian Financial Crime
Investigation Service ("FCIS"). Completion of the acquisition is subject only
to the approval of the FCIS and the Company understands that approval will be
granted shortly upon the completion of certain administrative matters by the
Lithuanian authorities.  The Company believes the exchange will be a
significant enabler for its GS Money stablecoin business, forming the third
pillar for GS Money, and will integrate well with Angra and its other
activities.

Tone Goh, Chairman of GST, commented: "The outlook for our blockchain enabled
neobanking business continues to be positive as the Company continues to make
significant progress with AngraFX and its other GS Money activities.

"Additionally, we look forward to concluding the acquisition of Glindala
shortly, to further strengthen the Group's offerings.  We look forward to
providing further updates in due course as we continue to progress."

Enquiries:

 The Company
 Tone Goh, Executive Chairman                            +65 6444 2988
 Financial Adviser
 VSA Capital Limited                                     +44 (0)20 3005 5000
 Simon Barton / Pascal Wiese
 Broker
 ETX Capital                                             +44 (0)20 7392 1400
 Tom Curran / Thomas Smith
 Financial PR & Investor Relations
 IFC Advisory Limited                                    +44 20 (0) 3934 6630

 Tim Metcalfe / Graham Herring / Florence Chandler       gst@investor-focus.co.uk

For more information please see: https://gstechnologies.co.uk/
(https://gstechnologies.co.uk/)

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

 

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