Global capital markets consulting, services and technology provider Delta Capita has named Montis Group as anchor client for its Distributed Ledger Services venture.
Delta Capita has acquired distributed ledger technology (DLT) from blockchain company SETL — part of the Colendi Group — and will dedicate the technology to building the next generation capital markets ecosystem.
Montis, a subsidiary of Archax, is using blockchain technology with the aim to revolutionise the Central Security Depository (CSD) landscape and enable tokenised assets, such as digital securities and security tokens, to realise its full potential.
The CSD infrastructure is designed to be “blockchain agnostic” and will extend across issuers, exchanges, other trading venues and market participants globally, says Delta Capita.
Montis has signed up Delta Capita Distributed Ledger Services — which is targeting a Q4 2023 go-live date — to provide the SETL technology and software development of core CSD services for debt and equity products.
It aims to incorporate blockchains, Archax Exchange and SWIFT connectivity and access to the European Central Bank’s TARGET2 payments system for central bank money settlement.
This will provide interoperability and cross-chaining between external permissioned blockchains and the ability to integrate with market participants across multiple financial market ecosystems.
As part of this deal, Montis Group will take a minority stake in Distributed Ledger Services.
Delta Capita CEO Joe Channer says: “Delta Capita is a specialist provider of services across the capital markets value chain. Asset tokenisation in regulated markets powered by distributed ledger technology has the potential to drive significant new revenues, capital efficiencies and operational cost reduction across our key client base in capital markets.
“Delta Capita Distributed Ledger Services represents our strategic intent to be at the heart of this next chapter of capital markets and technology innovation.”
Martin Watkins, Montis CEO, adds: “The tokenisation of digital securities is at an inflection point and Montis embraces this new paradigm shift in capital markets. Montis is establishing the DLT-based infrastructure required to support the settlement of MiFID-compliant native and non-native digital securities tokens, alongside conventional securities, operating via the Cloud.”
Earlier this month, Delta Capita announced the departure of head of securities finance and collateral management Jonathan Adams and the reported exit of other senior figures from its post-trade managed services division.
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