TATA, India's second largest company in terms of the market evaluation has successfully completed a blockchain trial of the cross-border securities settlement between two central securities depositories (CSDs).
Tata Consultancy Services (TCS) declared on Wednesday successful pilot project formed a set of equity and fixed income securities for Morocco's Maroclear security and Kuwait's clearing company on the BaNCS Network. BaNCS Network is basically the company's multi-asset transaction management system backed up by Quartz Blockchain.
In the tests carried out by the two CDS, cross-border settlement orders for the securities were matched and settled at once with the help of blockchain, stated TCS along with confirmation notifications coming in the real time.
The transactions were settled using "cash coins", a fiat-pegged stablecoin, on quartz blockchain with the help of a true delivery versus payment (DVP) settlement model.
"Cash coins are mainly a form of a digital currency pegged to a fiat currency at a fixed market rate and are maintained on a private, permissioned blockchain network. ash coins in a blockchain network enable seamless and real-time DVP settlement of cross-border securities transactions" the company said. Also, instant settlement significant decreases the amount of risk linked with such transactions.
The settlement model has full potential to highly decrease liquidity requirements for participants, along with reducing settlement risks.
R Vivekanand, who is the Vice-President and Co-Head of TCS Financial Solutions said,
"We are pleased to see our TCS BaNCS customers, Maroclear and Kuwait Clearing Company, leverage this capability, vindicating our commitment to provide sustained long-term value and innovation to our customers. 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"
Fathia Bennis, CEO of Marolear said, "We have demonstrated that by using disruptive technologies like Blockchain, we can overcome limitations in prevailing business models and create new business opportunities for our customers."
Quartz Blockchain solutions assist organizations in various domains to take complete advantage of blockchain for their business. It consists of Quartz smart solutions, a set of 'Designed for Blockchain' business solutions for various industries. Secondly, it consists of Quartz DevKit, smart contact development kit to allow programming of high-quality code on a lot of Blockchain technologies.
Also, it consists of Quartz Gateway, which is useful in linking current solutions with blockchain ecosystems and a Quartz Command Center which can administrate and monitor whole ecosystems.
Previously this week, TCS disclosed its Quartz blockchain solutions allows a client to connect to RippleNet, a blockchain based payment system for Ripple, thus allows users to perform cross-border remittance transactions.