BrazilKuwait and Morocco complete first cross-border blockchain securities settlement
Tata Consultancy Services has completed what it describes as the first successful cross-border block-chain securities settlement between two national central securities depositories, with the CSDs of Morocco and Kuwait acting as the test subjects.
Indian multinational IT and tech consulting and services giant Tata Consultancy Services (TSC) has completed the world’s first cross-border securities settlement between two central securities depositories (CSDs) using cash coins on its BaNCS Network, with the successful tests carried out by Kuwait Clearing Company (KCC) and fellow national CSD Maroclear of Morocco. The process was supported by Quartz Blockchain.
A core banking software suite developed by Tata, the BaNCS Network is a private permissioned blockchain ecosystem whereby its 450 customers across the banking, market infrastructure, custody and insurance domains can seamlessly collaborate by connecting to a single ledger and accessing information and services on a real-time basis – “opening up access to new markets, services and business lines across geographical boundaries.”
“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” said TCS Financial Solutions Vice President Ramgopal Vivekanand. “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.”
In 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. Using Quartz’s Smart Solution for Cross-Border Settlements, the cross-border settlement instructions for these securities were matched and settled instantaneously on the blockchain ledger.
Notifications on the status of the transactions were then published on the BaNCS Network and instantly made available to KCC and Maroclear, with the real time settlement process altogether reducing currency risks and enhancing liquidity. “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,” said Maroclear CEO Fathia Bennis.
“At KCC, we want to be at the forefront of innovation in Kuwait and the region, which is a key factor in fulfilling our ambitious strategy to develop the market,” added Kuwait Clearing Company CEO Khaldoun Altabtabaie. “The seamless integration of the market infrastructure solution from TCS BaNCS with Quartz Blockchain now opens up new opportunities for us to explore the usage of blockchain in the Kuwaiti market.”
With over 420,000 global employees and revenues pushing the $20 billion mark TCS is one the world’s largest such consulting firms of its kind, operating in 46 countries including through Middle East outlets in Saudi Arabia, the UAE, Kuwait, Bahrain, Israel and Qatar. Last month, the firm was recognised the Top Employers Institute as the leading employer in the Emirates and a ‘Top Employer’ in KSA and Qatar.
“The ability to leverage the unique backgrounds, skills and talent of culturally diverse people within TCS has allowed us to foster increasing levels of innovation and creativity,” said TCS MENA head Sumanta Roy. “We work closely with leading companies in the Middle East, helping to drive their Business 4.0 digital transformation journeys. Our strong value systems and focus on developing our employees’ digital and agile competencies have directly led to an exceptional and continued level of growth alongside our customers.”
