Singapore-based blockchain development startup Hashstacs (STACS) raised $3.6m in pre-Series A funding.
The round, which was led by early-stage venture capital firm Wavemaker Partners, saw participation from Tribe and Stellar Partners. With the latest round, its fundraising since its inception in 2019 totals to more than $6m.
STACS develops distributed ledger technology powered platforms for financial institutions to support the management of securities and environmental, social, and governance (ESG) financing dimensions encompassing green and sustainability linked bonds and loans.
The startup plans to expand its ecosystem of financial institutions on its sustainable and enabling technology infrastructure.
Commenting on the round, STACS chairman Ray Ferguson said, “Since the 1970s the capital markets have been fragmented, with institutions operating on different systems and ledgers, and going through a linearly-dependent process which has led to a situation whereby $800bn of capital is being locked up every single day in the international clearing system.
“In Europe, about 6% of trades fail to settle, resulting in €35bn in penalties annually. This is all wastage – wasted time, wasted money, wasted carbon footprints – that we at STACS are committed to addressing through our distributed ledger technology. On top of that, due to multiple layers of processing, nearly $300bn is being spent on transaction costs in a model that one would be hard-pressed to argue is efficient.
“Innovating our way out of these problems is vital if we are to deliver a green and sustainable future for financial services.”
In December last year, STACS completed a blockchain pilot project with Malaysia’s national stock exchange Bursa Malaysia in collaboration with the Labuan Financial Exchange, a wholly-owned subsidiary of Bursa Malaysia.
The firm also counts notable financial institutions as its customers including Deutsche Bank, BNP Paribas, Eastspring Investments, EFG Bank and Bluecell Intelligence. It is set to raise its Series A funding round later this year.
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