Delta Capita, a leading global capital markets consulting, services and technology provider, has announced an agreement with Montis Group to become the anchor client for its new Distributed Ledger Services venture.

In parallel, Delta Capita has acquired distributed ledger technology from SETL, part of the Colendi Group. Delta Capita will dedicate this technology to building the next generation capital markets ecosystem.

Montis, a subsidiary of Archax, is leveraging blockchain technology to revolutionise the Central Security Depository (CSD) landscape and enable tokenised assets, such as digital securities and security tokens, to realise their full potential. The CSD infrastructure is designed to be blockchain agnostic and will extend across issuers, exchanges, other trading venues and market participants globally.

Targeting a Q4, 2023 go-live date, Montis has signed up Delta Capita Distributed Ledger Services to provide the SETL technology and software development of core CSD services for debt and equity products, incorporating innovative blockchains, Archax Exchange and SWIFT connectivity, access to TARGET2 for central bank money settlement, interoperability and cross-chaining between external permissioned blockchains and integration with market participants across multiple financial market ecosystems. As part of this deal, Montis Group will also take a minority stake in Distributed Ledger Services.

Joe Channer, CEO Delta Capita commented: “Delta Capita is a specialist provider of services across the capital markets value chain. Asset tokenisation in regulated markets powered by distributed ledger technology has the potential to drive significant new revenues, capital efficiencies and operational cost reduction across our key client base in capital markets. Delta Capita Distributed Ledger Services represents our strategic intent to be at the heart of this next exciting chapter of capital markets and technology innovation. We are delighted to acquire SETL’s Capital Markets business and to be partnering with Montis to help them realise our shared vision for asset tokenisation.”

Martin Watkins, CEO Montis adds: “The tokenisation of digital securities is at an inflection point and Montis embraces this new paradigm shift in capital markets. Montis is establishing the DLT-based infrastructure required to support the settlement of MiFID-compliant native and non-native digital securities tokens alongside conventional securities, operating via the Cloud. Delta Capita’s recognised capital markets specialism, focus on innovation and the experience of their leadership in running complex regulated services makes them the right partner for Montis.”

Anthony Culligan, CEO SETL said: “I believe this deal enables each firm to make an incredible impact on the Capital Markets. SETL has been a leader in delivering distributed ledger solutions since 2016 and sees this opportunity with Delta Capita and Montis as ground-breaking. Delta Capita brings the scale, the resources and the global reach required to transform the Capital Markets industry. SETL will fully support Delta Capita in bringing the Montis infrastructure to live operation and in the future commercialisation of the technology in the Capital Markets arena.”

Source: Delta Capital