The STACS Protocol and what it means for RKT holders
Dear Rock Token holders,
I am writing to you to brief you on an important development which will affect all Rock Token holders. This update covers the following:
- The development of the GSX as a tokenised securities exchange.
- The development of the underlying technology we have named the STACS Protocol.
- The strategy to offer STACS as a global network of exchanges, broker-dealers, investment banks, and financial institutions.
- The implications for RKT holders.
The GSX Group has been working hard to expand its ecosystem to further develop and maximise the use of RKT. As described in our original RKT white paper, we saw the ecosystem expanding via a phased approach which can be summarised as follows:
Phase 1 -
Build the GBX as a licensed and regulated token sale platform and secondary cryptocurrency exchange which provides a multi fiat-crypto marketplace, whereby primary and secondary tokens can be traded in a trusted environment. Despite challenges along the way, including having to change our technology solution, we have managed to hit our milestones. Both the GRID and the DAX are open. All listing and sponsor fees are payable in RKT. We also offer benefits to holders including reduced trading fees and referral program rewards.
Phase 2 -
Build the GSX as one of the worlds first tokenised securities exchanges providing a digital platform for Security Tokens to be launched and traded. As a Stock Exchange, we see incredible opportunities to disrupt the existing traditional securities processes, thus reducing the speed and cost of capital and opening up markets to a whole new universe of investors. RKT is also going to be used to pay fees within the GSX.
Phase 3 -
Build out the rest of the GSX Group to provide our client base with ongoing solutions. We have successfully acquired two services companies, positioning Juno Services as the largest fund administration company in Gibraltar. We have seen a rapidly growing client base choosing Juno to provide fund admin services, particularly crypto funds, where we can also facilitate banking relationships here in Gibraltar. In addition to Juno, we are also close to completing an acquisition of a UK-licensed dealer-broker which provides FX (Foreign Exchange), derivative, and CFD services.
To explain Phase 2 in more detail, as we looked at the underlying technology that would facilitate the move to a digital securities exchange, we had originally considered a private chain which the GSX would have used as its own, to allow buyers and sellers to trade digital securities.
However, we considered this highly restrictive for our clients access to liquidity and essentially we would simply be building a new legacy system to replace our old legacy system.
We also discovered, through extensive discussions, that a large number of exchanges, investment banks, broker-dealers, and asset managers were all wrestling with the same question. The general consensus was that the public ledgers have some way to go to be fit for purpose and that there was no single solution that could deliver the complexity of digital securities trading and settlement.
Therefore, the GSX Group came up with the vision of the STACS Protocol - the Securities Trading Asset Classification Settlement Protocol - which is being developed by our new joint venture, Hashstacs Inc..
STACS, we believe, will transform the way capital markets operate, intersecting between global traditional capital markets and crypto finance. The grand vision of the STACS Protocol is to become a global leading Digital Asset platform for the capital markets of the future. A global network where regulated incumbents such as investment banks, exchanges such as the GSX, and broker-dealers will capitalise on the tremendous potential of tokenised securities, including STOs.
These Verified Partners will provide issuers with a location agnostic, global infrastructure, to issue in the jurisdiction(s) of their choice.
The STACS network is also a collaborative effort for issuers to access a global pool of capital and liquidity.
Regulators will be equipped with the tools to fulfil automated regulatory reporting. The approach is proactive, not reactive.
The STACS Protocol will bring an integrated platform and tools, from issuance to settlement, in an open, collaborative and inclusive environment.
The proprietary technology, highlighted in recent communications, will encompass the development of the STACS Protocol, the integration of the STACS enterprise wallet, and the implementation of trading platform services.
We see numerous benefits that tokenised securities provide:
1. Improved Liquidity (Democratising illiquid assets)
2. Lower cost of transactions (Removing the middleman)
3. Fractional ownership (e.g. Stradivarius violin, the Shard,
)
4. Faster trade execution and settlement (fewer intermediaries)
5. Greater security (less potential manipulation)
6. Global free market exposure (24/7 global pool of capital)
7. Lower issuance fee (Tokenisation-as-a-Service)
8. Easy to track (via DLT)
9. Applicable to all Asset Class (Equity, Debt, Oil, Gold, Fine Art...)
10. Compliance built in (Asset interoperability: frictionless)
11. Regulated (Accountability and credibility)
12. New financing models (Never possible before)
RKT Implications
The STACS Protocol provides good news for RKT holders.
Not only will RKT Holders continue to benefit from the ever-expanding utility within the GSX Group ecosystem which will include the GBX, the GSX, as well as other business lines but RKT will also be the token which drives the utility within the STACS Protocol. We will provide further details in our technical white paper which will be released in the coming weeks.
I remain more excited than ever about the future of the GSX Group, the future of the STACS Protocol, and most importantly the future of RKT/STACS.
We will ensure that we keep the TG channel up-to-date with all announcements as they happen over the next few months.
Nick Cowan
CEO - GSX Group