STACS supports InvestaX on PoC tokenization of Singapore Variable Capital Companies

UBS, State Street, and CMS jointly explored the potential of tokenization of the Singapore VCC structure (Project e-VCC)

Singapore-headquartered FinTech firm Hashstacs Pte Ltd (‘STACS’), focused on unlocking value for the financial industry and enabling Environmental, Social, and Governance (‘ESG’) finance, supported InvestaX as industry collaborator in their Proof-of-Concept (PoC) for tokenization of Singapore Variable Capital Companies (‘VCC’). Project e-VCC, led by InvestaX, UBS, State Street, and CMS, involved examining the technological, legal, and practical feasibility of tokenizing the Singapore Variable Capital Company using a blockchain native structure. Hashstacs Pte Ltd (‘STACS) and The Tezos Foundation were selected as private and public blockchain protocol providers respectively for this global first initiative. Through this proof-of-concept, industry participants were able to determine the lifecycle and workflow processes for efficiencies gained using an e-VCC by the relevant stakeholders (i.e. fund manager, fund administrator and investors), and the potential key considerations for tradability of such e-VCC securities on exchanges like InvestaX.

The project also explored VCC fund shares issued directly on either a permissionless/public blockchain or a permissioned/private blockchain. It also compared the benefits of a blockchain-native security token design (“one-tier”) as opposed to a tokenized security (“two-tier”) design.

Globally recognised participants UBS, State Street, and CMS brought together practical industry insights across the fund value chain, and in particular, where the use of Distributed Ledger Technologies (‘DLT’) could enable new market opportunities and operating models. STACS and The Tezos Foundation provided support via their live DLT platforms and domain expertise.

As a permissioned protocol, STACS provides an enhanced-Ethereum permissioned blockchain designed with a highly modular architecture, with additional features built directly at the node level to enhance processing capability and optimize enterprise access control. Utilizing the Solidity programming language for smart contract development, which is interoperable with other Ethereum-based enterprise blockchain protocols, STACS is able to support the use of well-established standards that are compliant with the industry for asset tokenization.

Benjamin Soh, Managing Director at STACS, said: “As a leading fintech firm in Singapore, STACS plays a key role in unlocking value for the financial industry via our live industry-wide DLT platform for Asset and Wealth Management, End-to-End Digital Securities, and Enhanced ESG Finance. This is a meaningful project and STACS is thrilled to be a technology partner of InvestaX and various partners in the VCC industry, to contribute our DLT solution expertise in ensuring the project’s practicality, scalability, and interoperability.”

Julian Kwan, CEO at InvestaX, said: “We are thrilled to have collaborated with UBS, State Street, CMS Holborn Asia, as well as our blockchain partners Tezos and STACS on this groundbreaking initiative to bring efficiencies to the fund investment and management industry. These funds in the real estate, private equity, and venture capital world, typically suffer from a lack of liquidity, high barriers to entry, and are burdened with paper-based processes that add to the costs of this competitive industry. By tokenizing the VCC, we hope to support Singapore’s ambition of becoming the world’s fund management center as well as the hub for capital markets innovations.”

Project e-VCC also led to the conclusion that there is nothing explicit in Singapore’s existing laws prohibiting issuance of blockchain-native securities. Such securities would come under the purview of digital tokens that constitute capital market products and be regulated under the Securities and Futures Act. However, the potential application of stamp duty was identified as a hurdle which must be addressed in order to enable secondary trading of e-VCC shares.

A full version of the public report of the PoC, which was awarded the PoC grant in September 2020, under the Financial Sector Technology and Innovation (‘FSTI’) scheme under the Financial Sector Development Fund administered by the Monetary Authority of Singapore (MAS), is available here.

Media Contact

Susy A.
TheDigitalBanker
[email protected]
Shopping Cart

Media Kit

    Data Protection

    Personal Data (“Data”) submitted for Media Kit (“Media Kit”), and/or collected in the form of first name, last name, email address and other contact details may be used for the purposes of inviting you to future events and for reaching out to you with content which may be of interest to you. For these purposes, The Digital Banker will share the Data with our associate companies (including event and content sponsors) to promote their products and services. You will also be automatically subscribed as a user on www.thedigitalbanker.com. If you would like to opt-out, email us at [email protected].

    By clicking Submit, you acknowledge that you consent/ have sufficient informed consent to the collection, use and disclosure of Data as set out above.

    The Digital Banker Summit

    Moving on from FTX: is 2023 the year of CBDCs?

    Indonesia, Jakarta

    Thailand, Bangkok

    Philippines, Manila

    Contact Us

      Data Protection

      The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

      Request Nomination Pack

        Data Protection

        The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

        Registration Form

          Data Protection

          The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

          Registration Form

            Data Protection

            The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

            Registration Form

              Data Protection

              The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

              Registration Form

                Data Protection

                The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                Registration Form

                  Data Protection

                  The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                  The world’s preeminent Private Banks and Wealth Managers are demonstrating a committed drive in innovation, advisory, new products and services to meet the sophisticated needs of their clients.

                  COVID-19
                  Amid economic activity revival on the back of the Covid-19 vaccine program, organisations moving from business continuity plans to stable working environments, together with the slightest improvement in unemployment numbers, forced the world to adjust to new realities. Coming to terms with the “new normal”, global investors are now on the look-out for attractive and stable investment opportunities.

                  Needs of Private Wealth customers and families worldwide have drastically changed due to the pandemic and banks have had to accelerate efforts to deploy a multi-channel service strategy and safeguard clients’ businesses and wealth against negative impacts of economic uncertainly.

                  The Global Private Banking Innovation Awards will recognise the world’s best private banks, wealth managers and asset managers that are championing innovation across advisory, service, products, customer experience and more.

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. 

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

                  Request Nomination Pack

                  Error: Contact form not found.