The Gibraltar Stock Exchange (GSX) and STO Global-X announced a partnership this Friday that will see the two firms working together to offer a tokenized securities exchange solution.
STO Global-X (STGX) is a Singapore-based startup, which enables different marketplaces to tokenize securities and facilitate the virtual ownership and trading of physical assets using digital tokens. The end-to-end platform includes a turnkey solution to put real-world assets into fractional ownership on the blockchain while offering investors a digital investment venue.
The collaboration was made through GSX’s Fintech arm, Hashstacs, and will see the unit integrating STO Global-X’s tokenization platform and exchange technology with its Securities Asset Trading Classification Settlement (STACS) Network. This brings the GSX a step closer to its ambition of enabling the issuance, trading, and clearing of digital securities on the blockchain.
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STO exchanges will radically transform capital markets
The exchange operator said that more features, as well as other digital asset classes, will be forthcoming in the following weeks. The integrated solution also supports KYC/AML requirements and the use of smart contracts, which will sit at the base layer technology for security tokens created through STGX’s issuance platform.
Gibraltar’s financial services watchdog has been active recently in providing its bespoke license for blockchain firms using distributed ledger technology. Attracting blockchain startups is seen as one way of bolstering Gibraltar’s thriving financial services industry after the self-governing territory, along with the UK, will leave the EU later this year.
Commenting on the news, Nick Cowan, CEO of the GSX Group, said: “As interest in tokenised securities continues to grow globally, we are glad to partner with STO Global-X to create and offer institutions a powerful technology platform to issue, manage & trade securities on DLT. We view this as the bedrock towards supporting other traditional financial functions in the areas of treasury, wrapped products and more.”
Floyd DCosta, CEO at STO Global-X added “Operating at the junction of traditional finance and innovative financial technologies, security token exchanges will radically transform the capital markets world. We are eager to work with institutions like the GSX Group to build the necessary infrastructure and lead in this new digital tokenised securities paradigm.”