Tata Consultancy Services (TCS), has recently completed a blockchain trial of “cross-border securities settlement between two central securities depositories (CSDs).”
TCS Had a Successful Pilot Project Trial
TCS which is Indian’s second largest firm in terms of market value announced that it has successfully completed a blockchain based pilot projects it has been working on for a while now. The recently concluded trial, saw the creation of 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 needed to hold the securities were also created.
Tata Consultancy Services made it known that in the test conducted by the CSDs, the instructions required for the cross-border settlement for these securities were uniform and settled on all ends “instantaneously” thanks to blockchain technology. Confirmation notifications were also said to have arrived in real time.
All transaction carried out on the pilot project were reportedly settled using “cash coins,” a fiat-pegged stablecoin, on the Quartz blockchain using a delivery versus payment (DVP) model.
The firm explained that “Cash coins in a blockchain network enable seamless and real-time DVP settlement of cross-border securities transactions,”. Unlike other cryptos with a delay in settlement, the Cash Coin completes transactions instantaneously, thereby reducing the currency risks associated with such huge transactions.
TCS Financial Solutions vice president and co-head R. Vivekanand, commented on the success of the TCS blockchain pilot project, saying:
“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 also said:
“By using technologies like blockchain, we can overcome limitations in prevailing business models and create new business opportunities for our customers,”
