Tata Consultancy Services (TCS), India’s second-largest firm by market valuation and the country’s largest IT service group, has completed a blockchain trial of cross-border securities settlement between two central securities depositories (CSDs).
TCS said that its successful pilot project created a set of equity and fixed income securities for Morocco’s Maroclear depository and the Kuwait Clearing Company (KCC) on the BaNCS network – the firm’s multi-asset transaction management system implemented on its Quartz blockchain. Segregated accounts to hold the securities were also created.
TCS said that in tests conducted by the CSDs, cross-border settlement instructions for these securities were matched and settled “instantaneously” using blockchain with confirmation notifications also arriving in real time. The pilot transactions were settled with ‘cash coins’, a fiat-pegged stablecoin, on the Quartz blockchain using a delivery versus payment (DVP) model.
Benefit of cash coins
“Cash coins in a blockchain network enable seamless and real-time DVP settlement of cross-border securities transactions,” said TCS, adding that having no delay in settlement “significantly” reduces the currency risks associated with such transactions.
TCS Financial Solutions vice president and co-head R. Vivekanand added: “Real-time cross-border settlement with cash coins reduces risks, costs and has the potential to create enhanced liquidity in markets in Middle East and Africa.“
By using technologies like blockchain said Fathia Bennis, CEO of Maroclear. “we can overcome limitations in prevailing business models and create new business opportunities for our customers.”
Earlier this week, TCS revealed that it was using Ripple Labs technology after joining its blockchain-based payments infrastructure RippleNet to boost the efficiency of its international remittance service. TCS said that its Quartz blockchain solution enables clients to connect to RippleNet, to help them process cross-border forex remittance transactions.
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