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India's TCS Pilots Blockchain-powered Cross-Border Securities Settlement

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Indian IT services major Tata Consultancy Services (TCS) successfully tested a cross-border securities settlement between two central securities depositories (CSDs). TCS claims this to be the world's first blockchain-powered cross-border securities settlement between two central depositories.

The transaction was executed between Maroclear, the CSD of Morocco, and Kuwait Clearing Company, the CSD of Kuwait, using cash coins on TCS's BaNCS Network, powered by Quartz Blockchain.

Cash coins are a form of digital currency pegged to a fiat currency at a fixed market rate and are maintained on a private, permissioned blockchain network. It enables seamless and real-time cross-border settlements that reduce currency risks and enhance liquidity.

The BaNCS Network is a private permissioned blockchain ecosystem through which the 450 TCS BaNCS customers across banking, market infrastructure, custody and insurance domains, collaborate by seamlessly connecting to a single ledger and accessing information and services on a real-time basis.

For the tests, a set of equities and fixed income securities from both the Kuwaiti and Moroccan markets were created on the BaNCS Network implemented on Quartz Blockchain, along with segregated accounts to hold these securities.

The cross-border settlement instructions for these securities were matched and settled instantaneously on the blockchain ledger using Quartz's Smart Solution for cross-border settlements.

The related notifications on the status of transactions were published on the BaNCS Network and instantaneously made available to the respective CSDs. These transactions were settled using cash coins held in the Quartz Blockchain in a true delivery versus payment (DVP) settlement model.

TCS BaNCS with Quartz Blockchain for Market Infrastructure is a multi-asset class solution designed for high performance transaction management.

The solution supports end-to-end trade and post-trade functions, including trade matching, settlement, risk and collateral management, surveillance, unified clearing, issuance, depository and registry functions around a common reference data layer.

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