TCS uses Quartz Blockchain to settle World's First Cross-Border Securities Transaction

Tata Consultancy Services (TCS), one of the biggest players in the IT industry, has announced that it used cash coins on the Quartz Blockchain powered BaNCS Network to successfully execute cross-border securities settlement between two central securities depositories (CSDs).

Maroclear, the CSD of Morocco, and Kuwait Clearing Company participated in the transactions.

The BaNCS Network is a private permissioned blockchain ecosystem. The BaNCS Network According to the announcement, TCS has 450 BaNCS customers across banking, market infrastructure, custody and insurance domains are collaborating with the single ledger and accessing information and services on a real-time basis.

Executive Opinion

Vice President and Co-Head, TCS Financial Solutions, R Vivekanand, 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. 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. 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.“

Real-time Cross-Border Securities Settlements 

A set of equities and fixed income securities from the Kuwaiti and Moroccan markets were created on the Quartz Blockchain powered BaNCS Network. Separate accounts were created to hold these securities. The transactions were settled using cash coins held in the Quartz Blockchain in a true delivery versus payment (DVP) settlement model, notes the announcement.

Cash coins are kind of digital currency pegged to fiat currency at a fixed market rate. As settlements were completed instantaneously and in real-time, the system also reduced the risk of exchange rate fluctuations.

In October 2018, TCS also announced their partnership with Intel to make Quartz blockchain powered ecosystems, more secure.