.India’s second-biggest firm completed a preliminary blockchain run of cross-border securities settlement between two focal securities safes (CSDs). Blockchain enables Tata to swiftly settle securities between national depositories.
The “successful” pilot project created a set of equity and fixed income securities for Morocco’s Maroclear depository. Tata Consultancy Services (TCS) announced this last Wednesday. The BaNCS Network is the firm’s multi-asset transaction management system. It is implemented on Quartz blockchain. On this network, the same set of securities also created for the Kuwait Clearing Company as well as segregated accounts to hold the securities.
Cross-border settlement instructions for these securities matched and settled “instantaneously” using blockchain in tests which CSDs conducted. TCS also said that confirmation notifications for these transactions arrived in real time.
The test transactions ran on the Quartz blockchain using a delivery versus payment (DVP) model. They settled with “cash coins,” a fiat-pegged stable coin.
The company said:
“Cash coins in a blockchain network enable seamless and real-time DVP settlement of cross-border securities transactions,” adding that the currency risks associated with such transactions are “significantly” reduced by having no delay in settlement.
TCS Financial Solutions VP and co-head R. Vivekanand stated:
“Real-time cross-border settlement with cash coins reduces risks, costs and has the potential to create enhanced liquidity in markets in the Middle East and Africa.“
Fathia Bennis, CEO of Maroclear said:
“we can overcome limitations in prevailing business models and create new business opportunities for our customers,” by utilizing advancements like blockchain.
It was revealed by TCS a week ago that in order to help clients process cross-border forex remittance transactions, its Quartz blockchain solution allows them to connect to RippleNet, which is a blockchain-based payments infrastructure from Ripple.