Blockstack To Hire GSR Markets To Trade Its STX Token and Provide Liquidity
Blockstack enters into agreement with GSR Markets, a company registered in Hong Kong, to offer international liquidity for its Stacks token (STX), CoinDesk reports.
The details of the agreement were filed on Oct. 24 with the SEC. According to the agreement GSR will offer all services linked with management of liquidity of STK.
Blockstack will pay a one off fee of $100k as well as monthly fee of $20k for half a year. On its part, GSR will offer all services that come with enhancing STX liquidity and evaluate the market aspects. As part of the agreement, Blockstack will also loan GSR Bitcoins and Ether worth $1 million to finance the trading. The loan will attract zero interest.
In a situation where the deal is vacated in future, GSR is set to return the Bitcoin and Ether. However, 50% of the loan will be calculated in accordance to the price of STX at that time.
In the previous week STX started trading on the globe’s largest crypto exchange, Binance as well as Hashkey Pro which is based in Hong Kong and targets institutional investors. Blockstack paid about $250k to Binance in order for the exchange to list STX. in this regard, GSR will offer liquidity management services of STX in the two aforementioned exchanges. GSR will also offer OTC services in markets that serve non-US citizens.
Muneeb Ali, Blockstack CEO, hailed GSR as one of the best professional market enablers and allayed any fears of conflict of interests between the two firms. He explained that the market maker will operate independently and that Blockstack had no agreement on how to share profits.
On his part Cristian Gil, Co-Founder of GSR, said it was an exciting chance to work with the first utility token which is fully compliant with the necessary legal requirements.
“We want the market maker to be an independent player. GSR has full discretion on how they operate and Blockstack PBC has no profit-sharing with them. We decided to work with GSR because their focus on compliance and ensuring high quality aligns well with us.”
However, for US citizens they will have to wait for a while before they can trade STX tokens. Currently, no exchange is yet to be granted permission to list the STX token. However, there is hope if STX is listed in the country, Blockstack will end the contract with GSR.