24th Aug 2022 10:56
(Alliance News) - GSTechnologies Ltd shares jumped on Wednesday after it said that the Lithuanian Financial Crime Investigation Service has approved its acquisition of UAB Glindala.
Shares in GSTechnologies were up 26% to 1.30 pence each in London on Wednesday mid-morning.
Back in January, the Milton Keynes, England-based fintech and information technology company entered a binding sale & purchase agreement to buy UAB Glindala for EUR27,500 in cash.
Glindala is a holder of a crypto currency exchange licence registered in Lithuania.
GSTechnologies said Glindala's crypto licence is supervised by the Lithuanian Financial Crime Investigation Service 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.
On Wednesday, the company said it had received approval from the FCIS, allowing it to complete the acquisition.
GSTechnologies now plans to use 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," it added.
It also said that it 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 services.
GSTechnologies expects this contract to "significantly accelerate" the timeline to bring the full exchange platform into operation, which it expects to be open for retail and institutional participation in the final quarter of this year.
It added that its strategy for its subsidiaries is to roll out GS Money based on three initial use-cases: international money transfers, borderless accounts, and private stablecoin.
Chair Tone Goh said: "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."
By Sophie Rose; [email protected]
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