Blockstack To Hire GSR Markets To Trade Its STX Token and Provide Liquidity

Blockstack blockchain project will hire GSR Markets to help trade its STX token and provide liquidity for non US-markets to attract global investors to enter and exit easier.

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.

Ali said,

“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.

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Joseph Kibe
Joseph Kibe
Joseph is a blockchain and cryptocurrency enthusiast, with a strong conviction that exposure of blockchain technology is for the good of the society. Fascinated by the massive potential of cryptocurrencies and the technology behind them – blockchain – Joseph spent lots of his time learning more about the industry, becoming a polished expert writer in the sector. He covers any cryptocurrency and blockchain related content.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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