Delta Capita and Montis Group have expanded the commercial partnership between the two firms, following the successful 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 revolutionary digital CSD solution provides the market infrastructure that is needed for regulated tokenised assets, in the form of digital securities, to achieve their full potential for the first time.

As a direct result of their successful collaboration last year and with the initial DLT-based systems delivered, Delta Capita and Montis have reached agreement in principle to expand their commercial partnership to target four additional market infrastructure use cases:

1. Settlement optimisation in Eurosystem markets
2. European listed warrants
3. Delivery versus Payment using deposit tokens
4. Delivery versus Payment using wholesale CBDC

Montis is using Delta Capita’s MACH technology to revolutionise the CSD landscape and received the institutional grade, production ready systems in advance of its full regulatory authorisation, expected early in 2024. The Montis CSD will be blockchain agnostic, supporting Ethereum, Algorand and Hedera as part of phase one.

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.

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.”

Source: Delta Capital