India’s second-biggest company by market valuation has settled cross-border securities between two central securities depositories (CSDs) on a blockchain.
Tata Consultancy Services (TCS) revealed April 10 that the “successful” pilot initiative established a set of equity and fixed income securities for Morocco’s Maroclear depository and the Kuwait Clearing Company on the BaNCS Network—the company’s multi-asset transaction management system executed on its Quartz blockchain. The project also established segregated accounts to hold the securities.
In trials facilitated by the CSDs, cross-border settlement with “cash coins,” a fiat-pegged stablecoin, on the Quartz blockchain utilizing a delivery versus payment (DVP) model.
“Cash coins in a blockchain network enable seamless and real-time DVP settlement of cross-border securities transactions,” the company said, adding that since the settlement has no delay, it “significantly” reduces the currency risks related to such transactions.
R. Vivekanand, vice president and co-head of TCS Financial Solutions, stated:
“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.”
According to Maroclear CEO Fathia Bennis, utilizing technologies like blockchain “can overcome limitations in prevailing business models and create new business opportunities for our customers.”
TCS announced earlier this week that its Quartz blockchain solution allows customers to connect to RippleNet, Ripple’s blockchain-based payments system, in order to assist them to facilitate cross-border forex remittance transactions.
TCS stated it was dealing with more than 100 blockchain pilot projects as far back as 2016.