The Tata Consultancy Services’ (TCS) BaNCS Network has powered the world’s first successful cross-border securities settlement between two central securities depository (CSDs), Maroclear, the central securities depository (CSD) of Morocco, and the Kuwait Clearing Company (KCC).
The transaction was completed using cash coins, powered by Quartz Blockchain on a delivery versus payment settlement model.
In tests run by the two CSDs, 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 on the blockchain ledger using Quartz’s Smart Solution for cross-border settlements.
Fathia Bennis, CEO of Maroclear, said: “We have expanded our decade-long relationship with TCS alongside the capabilities of TCS BaNCS, the BaNCS Network and Quartz Blockchain solutions in exploring new operational opportunities to enable the cross-border settlements landscape in the Moroccan and African markets.”
Khaldoun Altabtabaie, CEO of KCC, said: “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.”
He added: “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.”
R Vivekanand, vice president and co-head of TCS Financial Solutions, said: “The BaNCS Network has been created by TCS to leverage the power of Blockchain to deliver exponential value from ecosystems, a part of TCS’ Business 4.0 vision.”
He added: “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.”
