Payments Canada, the Bank of Canada, TMX Group, Accenture & R3 Demonstrate Feasibility of Instantaneous Equity Settlement thr...
May 11 2018 - 6:59AM
Business Wire
Proof of concept first to integrate cash and
assets to enable settlement on distributed ledger technology
Payments Canada, the Bank of Canada, TMX Group and Accenture
have demonstrated that the instantaneous clearing and settlement of
securities on-ledger is feasible, showing for the first time that
both central bank cash and assets can be tokenized to complete an
instant, end-to-end equity settlement on distributed ledger
technology (DLT).
Project Jasper is a collaborative research initiative between
Payments Canada, the Bank of Canada and TMX group to experiment
with an integrated securities and payment settlement platform based
on DLT. Jasper III, a continuation of previous work launched in
March 2016, is a proof of concept that was delivered by Accenture,
leveraging R3’s Corda DLT platform. It explores the impact and
potential benefits of DLT on broader Canadian financial market
infrastructure.
“This proof of concept shows that it is possible to deliver
payments in a way that has never been done before – by directly
swapping cash from buyers to sellers, resulting in instant
settlements,” said Gerry Gaetz, President and CEO of Payments
Canada. “We continue to see how the application of distributed
ledger technology can help extend the vision of payments innovation
in Canada and potentially, one day, help promote financial market
integration, both nationally and internationally.”
Previous phases of Project Jasper focused on the clearing and
settlement of high-value interbank cash payments using DLT. Phase
III explores an integrated payments and securities infrastructure.
The proof of concept allowed clearing and “delivery versus payment”
settlement immediately, demonstrating that it’s possible to
complete post-trade settlement on a DLT platform. The ability to
settle transactions immediately significantly reduces counterparty
risk and frees up collateral.
“We have witnessed an impressive achievement and an important
financial technology milestone for Canadian capital markets with
the successful transaction of tokenized securities and cash in
their basic forms,” said John Lee, managing director, Enterprise
Innovation & Product Development, TMX Group. “Many complex
challenges remain as we move ahead, but we look forward to the
crucial collaborative work necessary to effect substantive,
transformative change in global markets.”
Jasper III is currently the only proof of concept that maintains
privacy for market participants and their transactions by giving
only the parties involved in specific transactions the ability to
view the transaction history, without providing the same visibility
to other participants on-ledger.
“Maintaining privacy, as well integrating other assets onto the
same ledger as payments, would provide important benefits for the
financial system from the use of a DLT-based wholesale payment
system,” said Carolyn A. Wilkins, Senior Deputy Governor at the
Bank of Canada. “Indeed, a key lesson from prior phases of Jasper
was that the benefits of a DLT-based wholesale payment system
likely lie in its interaction with the broader FMI ecosystem. Such
benefits would come from reaping economies of scope and reducing
costs to participants.”
John Velissarios, Accenture’s Blockchain Technology &
Security Lead, said: “Project Jasper positions Canada as a leading
innovator, the first to fuse assets and fiat currency on ledger,
which is fundamental to moving towards production. Canada is the
first developed market to focus on a full-cycle, on-ledger,
trade-settlement system ― laying the groundwork for the Canadian
financial market infrastructure to collaborate with similarly
positioned global partners to derive new, mutually beneficial
opportunities and benefits of DLT.”
Jasper III initial findings were presented at the Payments
Canada SUMMIT by Andrew McCormack, vice president of Payments &
Technology at Payments Canada; John Lee of TMX Group; Scott Hendry,
senior special director of Financial Technology at the Bank of
Canada; and John Velissarios of Accenture. A white paper detailing
the complete findings will be released later this year.
About Payments Canada
Payments Canada ensures that financial transactions in Canada
are carried out safely and securely each day. The organization
underpins the Canadian financial system and economy by owning and
operating Canada’s payment clearing and settlement infrastructure,
including associated systems, bylaws, rules and standards. The
value of payments cleared by Payments Canada’s systems in 2017 was
approximately $50 trillion or $200 billion every business day.
These encompass a wide range of payments made by Canadians and
businesses involving inter-bank transactions, including those made
with debit cards, pre-authorized debits, direct deposits, bill
payments, wire payments and cheques. Payments Canada is a proud
supporter of the Catalyst Accord and the 30% Club.
About the Bank of Canada
The Bank of Canada is the nation's central bank. Its principal
role is "to promote the economic and financial welfare of Canada,"
as defined in the Bank of Canada Act. The Bank's four main areas of
responsibility are: monetary policy—keep inflation low and stable;
financial stability—promoting a safe, sound and efficient financial
system; currency—designing, issuing and distributing Canada's bank
notes; and funds management—acting as fiscal agent for the
Government of Canada.
About TMX Group (TSX: X)
The TMX Group profile also needs to be updated: About TMX Group
(TSX: X)
TMX Group's key subsidiaries operate cash and derivative markets
and clearinghouses for multiple asset classes including equities
and fixed income. Toronto Stock Exchange, TSX Venture Exchange, TSX
Alpha Exchange, The Canadian Depository for Securities, Montréal
Exchange, Canadian Derivatives Clearing Corporation, Trayport and other TMX Group companies provide
listing markets, trading markets, clearing facilities, depository
services, technology solutions, data products and other services to
the global financial community. TMX Group is headquartered in
Toronto and operates offices across North America (Montréal,
Calgary, Vancouver and New York), as well as in key international
markets including London, Beijing and Singapore. For more
information about TMX Group, visit our website at www.tmx.com.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions – underpinned by the world’s largest
delivery network – Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With approximately
442,000 people serving clients in more than 120 countries,
Accenture drives innovation to improve the way the world works and
lives. Visit us at www.accenture.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180511005155/en/
Payments CanadaTricia Weagant, +1 613 806
5168tweagant@payments.caorAccentureMelissa Volin, +1 267 216
1815Melissa.Volin@accenture.comorTMX GroupAmy Mulhern, +1 416 947
4210amy.mulhern@tmx.comorBank of CanadaLouise Egan, +1 613 782
8782communications@bank-banque-canada.ca
Accenture (NYSE:ACN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Accenture (NYSE:ACN)
Historical Stock Chart
From Sep 2023 to Sep 2024