Delta Capita is setting up a distiributed ledger venture, acquiring the capital markets business of blockchain firm SETL and signing up Montis Group as an anchor client and minority investor.
Montis, a subsidiary of Archax, is incorporating blockchain technology to build a central securities depository service capable of handling the settlement of tokenised assets in debt and equity markets . Set for go-live in Q4, the CSD infrastructure is designed to be blockchain agnostic and will extend across issuers, exchanges, other trading venues and market participants globally.
Joe Channer, CEO Delta Capita comments: “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.”
Launched in 2015, SETL was a key player in some of the early attempts to use blockchain technology within the investment funds market.
It was part of a collaboration between French fund management platform IZNES and blockchain-based central securities depositary ID2S to set up a post-trade structure based on distributed ledger technology (DLT).
While ID2S closed down in 2021, SETL went into administration in 2019. The firm was acquired by Turkey-based fintech Colendi in June last year.