Delta Capita and Montis Group announced an expansion of the commercial partnership between the two firms, which follows the delivery of the first phase of the Montis digitally-native Central Securities Depositary (CSD) system built on Delta Capita’s MACH Distributed Ledger Technology (DLT) platform.
This digital CSD solution provides the market infrastructure that is needed for regulated tokenized assets, in the form of digital securities, to achieve their full potential for the first time.
Delta Capita and Montis have reached agreement in principle to expand their commercial partnership to target four additional market infrastructure use cases:
- Settlement optimization in Eurosystem markets
- European listed warrants
- Delivery versus Payment using deposit tokens
- Delivery versus Payment using wholesale CBDC
MACH is a hybrid technology platform straddling existing ISO MT and MX messaging for securities, cash, and corporate actions, as well as providing a proprietary blockchain core interoperable with other blockchains. Additionally, the technology covers primary issuance and allocation, secondary trading on trading venues, HSM for encrypted networks, asset control and liquidity management and is deployed in AWS cloud across two Availability Zones.
Delta Capita describes its MACH technology as “institutional grade, production ready systems” with full regulatory authorization expected early in 2024. The Montis CSD will be blockchain agnostic, supporting Ethereum, Algorand and Hedera as part of phase one.
Steve Vinnicombe, head of MACH at Delta Capita, said in a statement: “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 tokenized assets. We are excited to partner with Montis to exploit these opportunities across regulated markets.”
Martin Watkins, CEO at Montis, said in a statement that the team has identified potential cost savings in excess of 40% for participants that can be achieved through the partnership: “We believe that all assets are moving on-chain, so the regulated infrastructure needs to be ready for that moment.”