World’s First Cross-Border
Securities
Settlement on Blockchain
CSDs in Morocco and Kuwait connect
via blockchain to complete cross border securities
settlement using Cash Coins
Maroclear, the central securities depository (CSD) of
Morocco, and Kuwait Clearing Company, the CSD of
Kuwait, conducted successful tests on blockchain for
cross-border securities settlement.
Both Maroclear and KCC are Market Infrastructure
customers of TCS BaNCS, making it easy to bring them
together on the BaNCS Industry Network running on the
Quartz blockchain. The pilot tests were completed in less
than six weeks.
The Quartz blockchain contained ledgers for each CSD
to maintain segregated accounts pertaining to a set of
equities and fixed income securities listed on the Kuwaiti
and Moroccan markets. Using those ledgers, cross-
border settlement instructions were matched and settled
instantaneously, with the associated notifications on the
status of the transactions available immediately to the
respective CSDs. Real-time delivery-vs.-payment (DvP)
cash settlement was accomplished using Cash Coins, a
form of digital currency.
WEF, Davos
The solution demonstrated the ability for CSDs to
process and settle transactions in “T+0” real time, leading
to increased transparency and improved settlement
efficiency.
“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 Fathia Bennis, CEO,
Maroclear.
“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,” said Khaldoun Al-
Tabtabaie, CEO, Kuwait Clearing Company.
WFC, Marrakech
The solution was showcased at the World Economic Forum (WEF) in Davos, Switzerland in January 2019
and at the prestigious World Forum Conference of CSDs in Marrakech, Morocco in April 2019.
This special section was written and compiled with the participation of
Malini Raman, Product Head, Quartz Blockchain Solutions and V. Anjana, Solution Architect.
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