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Please forgive me is we already knew this?
https://marketsecurities.fca.org.uk/officiallist
Lloyd perhaps you can enlighten me on this? Is this old or new news?
Search 'GST'
Located through this initial link
https://www.fca.org.uk/news/statements/fca-updates-position-cryptoasset-exchange-traded-notes-professional-investors
Further information
If an RIE creates a new UK listed market segment, the FCA will consider applications on a case-by-case basis for listing cETNs on the Official List.
We will review applications for cETNs to be listed on the UK RIEs for professional only market segments. It is for the RIEs to put the professional only market segments in plac
This list was updated at the end of March, this is just after we acquired Semnet, be interested to know if we were already on this list prior to Semnet, or have appeared on this list after Semnet...
Why would we not be on it before semnet???
This is to do with cryptoasset exchanges splatted, I was wondering if Gst had a knock back due to their security not being upto scratch with Fca, but now they have Semnet, have they been added due to Semnet being good enough to satisfy Fca?
Hence my question.
AHS I actually don’t think it was all to do with security. I think it is a lot to do with how they are going to back their coins. The way they have to work is if you issue let’s say one GGBP coin they (gst) will need to have £1 in the bank to back it. Like wish with the other coins GEUR is 1 euro etc. I think they assumed going into sandbox they would be able to start small and build up the funds to back their coins at scale. Until accounts we don’t know how much they have to back their coins but if they still need to raise then they aren’t ready yet to issue them at scale. This is why I think the DSS sandbox is where they will go as authorisation now wouldn’t allow them to get very far I don’t think. This is also why I think they will want to sell the business earlier unless they pump large sums of money in from somewhere to back their coins.
So if they issue 1million GGBP coins tomorrow they will have to have 1million gbp in the bank so they could be redeem straight away should the holders want to covert back.
Mmmm, the undeniable scale problem. A buyout but at what price, or other options....the next year is anyone's guess
Lloyd not sure that's how it works.
Clients would deposit their own money into 'a bank'
That money would then be traded in fiat/stablecoin.
Gst wouldn't need that amount of money as stabelcoins are pegged to fiat, I.e 1 GGBP = £1. The value doesn't change. So the more clients deposits into their accounts the more Gst can make on exchange rates etc. The Neo bank deals with clients money, they should also have insurance etc.
Gat have now appeared on Fca's official list, my question was, have they always been there, or have they appeared recently, like in March 24 or were they already on it? If that is a recent addition, that's fantastic news for the company.
I’ll see if I can get the info AHS, but I read a while ago that the FCA were wanting issuers to have their own assets and not relying on customer deposits. I’ll read the discussion paper again, but the way I read it is they didn’t want banking deposits used as backing assets.
I found this :
According to the FCA’s discussion paper DP23/4, issuers will be required to hold assets backing stablecoins in a statutory trust in favor of underlying customers.This means that the value of the stablecoins must be matched by physical assets or currency to maintain stability and trust in the value of the stablecoins.
Additionally, the FCA’s proposed approach to regulating fiat-backed stablecoins aims to ensure that backing assets are sufficient to back all issued stablecoins in circulation, with any change in stablecoin supply being matched by a corresponding adjustment in backing assets. This is part of the broader regulatory framework to ensure the safety and stability of digital currencies and their use in the financial system.
This still doesn't answer my original question to Gst appearing on the official list now.
AhS official list more to do with stock listing on exchange etc.
Oh and for those getting knickers in a twist regarding having funds to off set deposits . Your deposits will be secured by bonds
Even bonds need to be coveredy by cash. you can't have deposits covered by bonds which are covered by deposits!
a lot was made of the fact that Revolut were significantly bigger company so weren't a fair comparison to GST. But maybe that's why their sablecoin will have an easier time to be approved?
If bonds are the solution then it's for GST to state it, not a retail investor. i haven't found a statement from GST that makes that claim.
The only logic that counters it is why would GST seek approval without the backing for it... and i don't have an answer for that!
Kat you need to do some more research.
Banks hold a fraction of their liabilities in cash, it's bigger now than it used to be as its what caused the demise of Northern Rock for instance