GSTechnologies Limited (LSE: GST), the fintech and information technology solutions company, is pleased to announce, further to the announcement on 20 January 2020, that the Company has now completed the acquisition of the whole of the issued share capital of UAB Glindala ("Glindala"), a holder of a Crypto Currency Exchange Licence registered in Lithuania.
Glindala's Crypto Currency Exchange Licence is supervised by the Lithuanian Financial Crime Investigation Service ("FCIS") and it covers two types of crypto activities, cryptoasset exchange services, both crypto-fiat and crypto-crypto, and cryptoasset depository wallet services, including generating and storing encrypted client keys. Completion of the acquisition was subject only to the approval of the FCIS which has now been received.
GST plans to utilise Glindala to launch a regulated cryptoasset exchange platform to offer crypto products and GS Money stablecoin settlements to retail and institutional clients. The regulatory permission secured is a significant step forward in GST's stablecoin expansion strategy in Europe.
Following the acquisition of Glindala, GST has entered into an agreement with an exchange infrastructure technology partner to provide the technology and software to run the exchange and integrate it with the Company's other offerings. This is expected to significantly accelerate the timeline to bring the full exchange platform into operation. The Company is targeting the crypto exchange being open for retail and institutional participation in the last quarter of 2022.
In line with its stated strategy, the Company's principal business model for the GS Fintech subsidiaries remains to roll out GS Money based on three initial use-cases: international money transfers, borderless accounts, and private stablecoin. The Company believes the exchange will be a significant enabler for its GS Money stablecoin business and will integrate well with the recently acquired Angra business.
Tone Goh, Chairman of GST, commented: "With the acquisition of Glindala our total addressable market is now much broader and it creates a step change in our combined offerings to our clients. For example, instead of solely relying on costly wire transfers to conduct cross-border trading transactions, Angra's clients will soon be able to pay out and get paid in cryptoassets including Bitcoin, Ethereum, stablecoins, and other digital assets. We look forward to providing further updates in due course as we establish our cryptoasset exchange business and progress the roll out of GS Money."
Tone Goh, Executive Chairman
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