Project Funded by MAS under the Financial Sector Technology & Innovation (FSTI) Proof of Concept Grant
SINGAPORE / HONG KONG, CHINA - Media OutReach - 14 October2020 - Hashstacs Pte Ltd (also known as "STACS"), a Singapore FinTech company focusingon Blockchain technology solutions, announced its partnership with EFG Bank ("EFG")to co-develop a Blockchain platform that will enhance and simplify theprocesses of structured products.
"Project Nathan -- Smart Structured Products", a collaboration betweenSTACS and EFG, aims at using new Distributed Ledger Technology (DLT) toautomate and manage the entire lifecycle of a structured product. The Nathanplatform comprises the underlying STACS Blockchain and smart contracts, and abusiness application with an intuitive user interface.
The Nathan platform wasawarded the Monetary Authority of Singapore ("MAS")'s Financial Sector Technology andInnovation (FSTI) Proof of Concept (POC) grant on 2 March 2020. The FSTI POCgrant provides funding support for experimentation, development and disseminationof nascent innovative technologies in the financial services sector.
Project Nathan achievedmany milestones through close collaboration work between STACS and EFG. It iscurrently in its first phase, where STACS worked with EFG to remodel theworkflows involved in a structured product transaction, facilitated theinternal efficiencies between various EFG departments involved in structuredproduct transactions, as well as looked at the usage of smart contracts toautomate aspects of trade inception and trade servicing.
Mr Benjamin Soh, Managing Director of STACS, said: "Tapping on thesuccess of Phase 1 of Project Nathan, we are now able to proceed with furtherphases of commercialisation for the Nathan Platform, and look towards further rolloutof our digitalisation initiatives towards the wider industry."
Workflow processesthat are heavily manual today, such as the reconciliation of structured producttrades and fixings, are now enhanced and simplified on the Nathan platform. EFGhas reported a significant reduction in manhours and operational risks, and anincrease in efficiency of more than 50%. Overall, the Nathan Platform hasallowed the bank the ability to increase servicing capacity by close to 300%. Startingwith FX Accumulators, the solution will be scaled up to include other types ofstructured products in future.
Mr Ivan Ferraroni, Managing Director of EFG Bank, Hong Kong said,"Participating in this MAS funded initiative was an exciting experience forEFG and our team members. This is inline with our efforts to change the speed and scope of digitalisation in ourbusiness. Working with STACS has been very smooth and seamless, and wecertainly managed to learn from each other. The project is innovative,demonstrates significant efficiency gains and can be extended to other assetclasses in the future."
Codeveloping Blockchain Use cases with market participants
With recent trends of blockchain adoption in the capital markets, STACSserves as a complete solutions partner. By co-developing a Blockchain projectwith EFG, STACS has provided a model for market
participants, providing them a solution for industry pain-points highlightedby the participants. STACS also provides a full suite of platforms covering differentservices in various live projects with multiple stock exchanges and commercialbanks in both the EU and Asia.
"Project Nathan demonstratesthe commitment of STACS as an innovative fintech development company to helpfinancial institutions like EFG Bank to embrace digitalisation and seek newopportunities. This is an exciting timein the FinTech world as we see a growing number of institutions looking at Blockchain,and EFG has taken the lead to adopt this innovative approach to structuredproducts. Adoption of new technologies by financial institutions will enablethem to reap the benefits of reducing costs and improve efficiencies," added MrBenjamin Soh.
Hashstacs Pte Ltdor "STACS" is a Singapore fintech development company providing ready platformsthat make global markets simpler for financial institutions. STACS is leadingthe way forward by digitalizing assets, processes and documents using nextgeneration blockchain-based technology. Its clients and partners includeinvestment banks, stock exchanges, custodian banks, asset managers and privatebanks. STACS is a recipient of the MAS FSTI POC grant, and a technologyparticipant of the MAS Project Ubin.
About EFG Bank
EFG Bank is one of the largest Swiss private banks with strong rootsin the home market and a global presence. EFG represents security and solidity,an entrepreneurial way of thinking and acting, and a powerful blend of agilityand reliability. EFG's motto is: "Entrepreneurial thinking. Private banking".