Tata Settles Securities Between National Depositories on a Blockchain

India's second largest firm has completed a blockchain trial of cross-border securities settlement between two central securities depositories.

Apr 11, 2019 at 9:05 a.m. UTC
Updated Sep 13, 2021 at 9:04 a.m. UTC

India's second largest firm by market valuation has completed a blockchain trial of cross-border securities settlement between two central securities depositories (CSDs).

Tata Consultancy Services (TCS) announced Wednesday that the "successful" pilot project created a set of equity and fixed income securities for Morocco's Maroclear depository and the Kuwait Clearing Company 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.

In tests conducted by the CSDs, cross-border settlement instructions for these securities were matched and settled “instantaneously” using blockchain, TCS said, 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.

“Cash coins in a blockchain network enable seamless and real-time DVP settlement of cross-border securities transactions,” the firm said, 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, said:

“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, "we can overcome limitations in prevailing business models and create new business opportunities for our customers," said Fathia Bennis, CEO of Maroclear.

Earlier this week, TCS revealed that its Quartz blockchain solution enables clients to connect to RippleNet, a blockchain-based payments infrastructure from Ripple, in order to help them process cross-border forex remittance transactions.

As far back as 2016, TCS said it was working on over 100 blockchain pilot projects.

Tata Consultancy Services image via Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown
2
CoinDesk - Unknown
Justin Sun Still Thinks Algorithmic Stablecoins Are a Good Idea

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

CoinDesk - Unknown
3
CoinDesk - Unknown
Former BitMEX CEO Arthur Hayes Sentenced to 2 Years Probation

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

CoinDesk - Unknown
4
CoinDesk - Unknown
Market Wrap: Cryptos Decline Amid Choppy Trading, DeFi Tokens Underperform

Aversion to risk remains as volatility returns to stocks and cryptos.

Aversion to risk remains as volatility returns to stocks and cryptos.

CoinDesk - Unknown