Singapore-based fintech STACS raises $ 3.6 million to develop blockchain platforms for financial institutions
Singapore-based fintech Hashstacs Pte Ltd (STACS) announced today that it has raised US $ 3.6 million in pre-series A funding. The company is developing blockchain platforms that can work with the existing infrastructure of financial institutions, and its core technology is also used in GreenSTACS for environmental, social and governance (ESG) investments. The round was led by Wavemaker Partners, which focuses on companies and deep-tech companies in Southeast Asia, with the participation of Tribe Accelerator, a program for blockchain startups supported by the Singaporean government. STACS participated in Tribe last year, with Project Ubin, the Monetary Authority of Singapore’s blockchain-based multi-currency payments network initiative.
Founded in 2019, STACS has now raised a total of over $ 6 million and is preparing to raise Series A funds later this year. The company’s goal is to correct the fragmentation of technological systems used by financial institutions which can lead to the freezing of capital in international clearing systems, an accumulation of transaction fees and fines for transactions that do not settle. . Its main solution is a technological stack built around the STACS blockchain. It allows clients to integrate payment platforms (including Ubin), trading platforms and external software such as user management systems, while enabling smart contracts and digital ledgers.
STACS products include a real-time transaction processing platform used by clients such as Eastspring Investments and BNP Paribas Securities Service. Some of its other clients are Deutsche Bank, Bursa Malaysia, EFG Bank and Bluecell Intelligence. STACS co-founder and CEO Benjamin Soh told TechCrunch that STACS is targeting a network of more than 30 institutions by the end of this year.
GreenSTACS was launched last month as part of a collaboration with Bluecell Intelligence to help businesses certify and monitor green and sustainability-related loans and bonds.
Soh said in an email that STACS had received many requests from financial institutions that needed to monitor impact on ESG projects, but was unable to do so effectively because ” information sources are asymmetric, there is no common data infrastructure, and the ESG finance service is generally too inefficient. “
The goal of STACS is to make GreenSTACS “the common infrastructure” for ESG financing and impact monitoring, he added. The platform allows loan and bond parameters to be programmed into security tokens and connects to data sources, such as IoT devices or satellite imagery, to create real-time impact reports on a distributed ledger. This helps avoid “greenwashing,” a term that refers to something appearing more environmentally friendly or sustainable than it actually is.
“Essentially, it would build investor and bank confidence in green finance by ensuring that green money is strictly used to achieve promised green goals and policies,” Soh said.
In a press release, Wavemaker general partner Gavin Lee said, “There is a huge opportunity to help financial institutions process large volumes of transactions faster, more securely and accurately while reducing costs. costs and illiquid capital. As a provider of enterprise distributed ledger technology, STACS has produced a secure layer that can be instantly deployed on top of existing infrastructure. Business sales are never easy for start-ups, but Benjamin is a convincing and seasoned serial entrepreneur who has secured many top financial institutions as key clients. “