Delta Capita and Montis Group have announced the expansion of their commercial partnership, building on their initial success in developing the Montis Central Securities Depositary (CSD) system. This digitally-native CSD system, powered by Delta Capita’s MACH Distributed Ledger Technology (DLT) platform, is designed to provide the market infrastructure needed for regulated tokenised assets, in the form of digital securities, to achieve their full potential.
The expansion of the partnership follows the first phase of collaboration between the two firms last year, where they successfully delivered their initial DLT-based systems. The enhanced agreement aims to target four key market infrastructure use cases: settlement optimisation in Eurosystem markets, European listed warrants, and Delivery versus Payment (DvP), using both deposit tokens and wholesale Central Bank Digital Currencies (CBDC).
The Montis CSD, which utilises Delta Capita’s institutional-grade, production-ready MACH technology and is designed to be blockchain-agnostic, supporting various platforms including Ethereum, Algorand, and Hedera as part of its first phase, is expected to receive full regulatory authorisation in early 2024.
MACH, as a hybrid technology platform, encompasses both traditional ISO MT and MX messaging for securities, cash, and corporate actions, and features a proprietary blockchain core interoperable with other blockchains. The technology, deployed in AWS cloud across two Availability Zones, extends to cover primary issuance and allocation, secondary trading on trading venues, HSM for encrypted networks, asset control, and liquidity management.
Steve Vinnicombe, Head of MACH at Delta Capita, commented: “This is a significant milestone for our MACH technology. Working with Martin and the Montis team to engineer a solution capable of supporting the services required by the next generation of financial markets has been a highly collaborative and rewarding experience. It is clear that the market has an increased appetite for technology that can help to unlock the cost reduction, liquidity and revenue generating benefits of natively digital and tokenised assets. We are excited to partner with Montis to exploit these opportunities across regulated markets.”
Martin Watkins, CEO at Montis, added: “We are delighted to expand our commercial relationship with Delta Capita into four key areas following delivery of our innovative CSD systems and have identified potential cost savings in excess of 40% for participants that can be achieved through our partnership. We believe that all assets are moving on-chain, so the regulated infrastructure needs to be ready for that moment. Montis is ahead of the curve and with all the largest financial institutions agreeing that tokenisation is the future, we are perfectly placed to meet the rapidly increasing demand.”
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