LONDON, UK: GSTechnologies Limited (LON: GST) has signed a Collaboration Agreement with Wise MPay Pte Ltd, the Singaporean blockchain payment solution provider, with a view to Wise MPay providing GST with software and services to facilitate its plans to develop new higher-growth synergistic business areas focussed on blockchain technology, particularly those applicable in the banking and wider financial services sector.
The Agreement builds upon the Memorandum of Understanding between the Company and Wise MPay announced on 21 April 2021.
As previously announced, GST remains focussed on its corporate strategy of operating a profitable information and communications technology (ICT) business, serving some of the most respected governmental and private organisations worldwide. This strategy includes seeking to enable and enhance the current Internet of Things (IoT) and ICT offerings through the application of new highly scalable disruptive technologies, in particular enterprise blockchain solutions and services.
Whilst the Company remains focussed on developing the existing business of its wholly owned subsidiary EMS Wiring Systems, the Company’s goal is to also focus on new higher growth synergistic business areas focussed on blockchain technology, particularly those applicable in the banking and wider financial services sector. The Company’s blockchain technology activities are being led by the Company’s executive directors, Jack Bai and Shayne Tan, with the support of the wider GST team. Additionally, the Company established earlier this year two wholly owned subsidiaries, GS Fintech Ltd, in UK, and GS Fintech Pte Ltd, in Singapore to facilitate its future plans.
Through the collaboration between GST and Wise MPay, underpinned by the Agreement, the Company plans to launch a borderless neobanking platform providing next-generation digital money solutions. The Company’s neobanking platform, to be named GS Money, is intended to be made up of the following products:
1. GS Money protocol, a global money protocol for stable digital tokens built on the Coalculus blockchain platform. The GS Money protocol will be designed to enable companies (regulated money services business, payment processor and merchants) to launch new payment use cases and conduct the wholesale netting of payments between retail payment providers in a trusted and compliant manner.
2. GSend, a remittance gateway which is initially intended to be launched in the UK. The GSend electronic bank-to-bank transfer method will be supported by Wise MPay’s banking and financial institution partners, and overseas agent network, currently operating in over 18 countries and in over 20 currencies. GST are in the process of applying for an Authorised Payment Institution (API) licence in the UK to provide the required approval for this service.
3. GS Money App, a mobile neobank application offering fee-free cross border payments. This new payment service is intended to use regulated stablecoins and blockchain-based ‘bank accounts’ to instantly transfer value between US dollars, Sterling, Euros and Chinese Yuan via a mobile device without foreign exchange mark-ups or additional fees. Once launched, the GS Money App intends to operate as a European Electronic Money Institution (EMI) licenced service, subject to the appropriate approvals being received. The GS Money App will not follow a banking/lending business model and it will not be engaging in fractional reserve practices as undertaken by banks. The cash reserve will be transparently managed by an EU registered entity that is yet to be established or acquired. Every stablecoin token will be backed 1-to-1 with real currency.
Software and services to be supplied under the Agreement
Under the Agreement Wise MPay will supply the Company with a number of standard and bespoke software packages which include, inter alia, software to enable the Company to establish a remittance portal (GSend), an eWallet app (GS Money), Know Your Client (KYC) administration and an encryption engine.
Additionally, Wise MPay will supply four enterprise blockchain consensus nodes that come with 25 million stake tokens each, based on the Coalculus blockchain platform, to enable transaction validation on the Coalculus network for transactions undertaken by GST’s proposed customers in US dollars, Euros, Sterling and Chinese Yuan.
These software packages being supplied by Wise MPay will be integrated on the Company’s cloud server, together with software supplied by the Company and third party payment gateway packages.
Wise MPay has agreed to provide reasonable ongoing support and training to the Company in respect of the software and systems it is supplying, together with software and Coalculus platform upgrades when available.
Consideration for the Agreement
Payment for all the software and services to be provided under the Agreement will be satisfied by the issue of 100,000,000 new ordinary shares in the Company (“New Ordinary Shares”) to Wise MPay, subject to the approval of the issue of the New Ordinary Shares by the Company’s shareholders at a General Meeting to be convened in due course. Additionally, in order for the Company to issue the New Ordinary Shares and for them to be admitted to trading on the Standard Segment of the Official List and on the Main Market of the London Stock Exchange the Company is required to publish a prospectus approved by the Financial Conduct Authority (“FCA”). The Company has commenced preparation of the required prospectus, which will be submitted to the FCA for approval in due course.
In the meantime the Company and Wise MPay have agreed to work together to progress the Company’s plans and the implementation of the software and services to be provided under the Agreement. Further announcements will be made as appropriate.
Tone Goh, Chairman of GST, commented: “I am delighted that we have agreed terms with Wise MPay to provide the required software and support to enable the establishment of our planned borderless neobanking platform providing next-generation digital money solutions. These are exciting times for GST as we endeavour to be at the forefront of the next wave of financial services and I look forward to making further announcements as we progress.”
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27 May, 4:52 pm GMT+1 · Disclaimer