Singapore fintech firm Hashstacs (STACS) has collaborated with Zurich-based private banking group EFG Bank to develop a blockchain platform aimed at enhancing and simplifying the processes of structured products. Project Nathan - Smart Structured Products will use distributed ledger technology to automate and manage the entire lifecycle of a structured product. It comprises the underlying STACS blockchain and smart contracts, and a business application with an intuitive user interface.

Project Nathan is currently in its first phase, where STACS worked with EFG to remodel the workflows involved in a structured product transaction, facilitated the internal efficiencies between various EFG departments involved in structured product transactions, and looked at the use of smart contracts to automate aspects of trade inception and trade servicing.

On March 2 2020, the Nathan platform was awarded the Monetary Authority of Singapore’s (MAS) Financial Sector Technology and Innovation proof of concept (FSTI POC) grant, which provides funding support for experimentation, development and dissemination of nascent innovative technologies in the financial services sector.

STACS managing director Benjamin Soh says: "Tapping on the success of Phase 1 of Project Nathan, we are now able to proceed with further phases of commercialization for the Nathan platform, and look towards further rollout of our digitalization initiatives towards the wider industry."

Ivan Ferraroni, head of global markets Asia at EFG, adds: "Participating in this MAS-funded initiative was an exciting experience for EFG and our team members.  This is in line with our efforts to change the speed and scope of digitalization in our business. Working with STACS has been very smooth and seamless, and we certainly managed to learn from each other. The project is innovative, demonstrates significant efficiency gains and can be extended to other asset classes in the future."

STACS believes its collaboration with EFG has provided a model for other market participants in addressing industry pain-points. The company also provides a full suite of platforms covering different services in various live projects with multiple stock exchanges and commercial banks in the European Union and Asia.