STACS is a Singapore-based FinTech firm started up by veterans of the capital market, who experienced first hand its challenges and together created a unified vision to simplify and evolve global markets through Transformative Technology.
We see the capital markets of today as a patchwork quilt. It works, but there are holes that have been patched over time.
The reality is that capital markets are still fragmented and overly-complex. Trade breaks, reconciliations, manual operational processing, locked-up capital, and costly errors and penalties. While the market has certainly evolved from trading paper to electronic securities, the technology, and operating model have remained largely the same for the past 50 years. The patchwork quilt has been haphazardly mended by chunky patch-ons; Over time, layers and layers of additional processes and interim workarounds, resulting in more locked up capital, have been added.
Trade settlement infrastructure in the 2020s still requires financial institutions to post billions of dollars each in capital requirements, while settlement times can take up to two weeks and involve multiple parties, all of which are on different systems and ledgers and stuck in a linearly-dependent process. The result is an inefficient, costly, and cumbersome hidden back-end to capital markets.
This leads to US$800 billion of unproductive capital being locked up every single day in the clearing system.
With multiple layers of processing, US$300 billion is being spent every year on transaction costs, and this model isn’t even effective.
In the EU alone, because of the delay in settlements, 6 percent of trades actually fail to settle, which results in €35 billion being paid in penalties every year.
What’s frustrating is that the technology to solve this problem is already here.
This is where we really come in…
At STACS, we envision a global market that is simple and sustainable. We see a world where everyone is connected. Hyperconnected. No more chunky patch-ons. It’s time for a systemic change. This is a story of how we are using Transformative Technology to empower capital markets and financial institutions to unlock massive value, efficiencies, and opportunities.
STACS provides a complete infrastructure of live institutional award-winning technology platform solutions that makes global markets simpler by empowering financial institutions to settle, trade, allocate, and clear trades effectively and in real time.
Our technology links capital markets simultaneously, transforming them from linear interdependency to concurrent distributed processing – unlocking massive value and opportunities.
We use a lot of Distributed Ledger Technology (DLT). Our proprietary STACS Blockchain technology is specially designed for finance. But we use other technologies too. Cloud for modular solutions and deployment, and AI to harness predictive analysis with smart usage of data. Our goal is to provide a simple, readily available, and flexible experience for our clients and partners, which include global investment banks, national stock exchanges, brokerages, custodian banks, asset managers, and private banks.
We are committed to doing so in a green and sustainable manner, using our GreenSTACS technology to create an inclusive and sustainable ecosystem.
What sets us apart is that we provide interoperability between existing infrastructure and platforms with the STACS blockchain core. This allows institutions to readily enjoy the benefits of our DLT solutions without the need for massive capital expenditure. Integrations are available.
The end result is one where financial institutions are empowered to enjoy unprecedented efficiencies and unlock massive capital that can now be put to productive use. As importantly, we give them the potential to explore new opportunities in various strategic and thematic areas like Environmental, Social, and Governance (ESG) and Green Finance.