Depósito Central de Valores, Chile’s Central Securities Depository, Expands Capabilities to Support the Registration, Transfer and Settlement of Digitized Securities
NEW YORK and SANTIAGO, Chile, June 29, 2023 (GLOBE NEWSWIRE) — Nasdaq (Nasdaq: NDAQ) and Depósito Central de Valores (DCV) today announced an extension of their technology partnership, which will allow DCV to issue and settle digitized securities. Incorporating this service will differentiate DCV as a first mover in the tokenization of assets whilst providing its clients with one platform, based on a consolidated view and single access point across all asset classes.
The technology leverages digital asset capabilities developed by Nasdaq and is fully integrated with its Central Security Depository solution, DCV Evolución. The new service will reduce manual processes, settlement times, and time to market for future enhancements and offerings.
“Market infrastructures are increasingly looking for ways to embrace tokenization, driven by an accelerating global trend towards leveraging existing securities systems and payment rails to service emerging asset classes,” said Roland Chai, Executive Vice President and Head of Marketplace Technology at Nasdaq. “Nasdaq’s technology allows providers to continue serving traditional securities, whilst capturing the many opportunities across digitized assets. The expansion of our partnership with DCV puts them at the forefront of this secular shift.”
DCV will leverage smart contracts to store information related to the underlying security and its ownership, thereby enabling them to automate asset servicing procedures such as managing interest payments or time-consuming legal processes.
“With a solid focus on the client, at DCV we recognize the need to move towards a modern capital market, with access to world-class standards and technology that allows agility and simplicity in the processes without neglecting the security that our business and our clients need. This is the vision that has mobilized us to advance in the DCV Digital project hand in hand with Nasdaq,” said Rodrigo Roblero, CEO at DCV. “We are interested in being a relevant player in the world of tokenizing assets to deliver an applicable service that helps to improve the processes of issuing instruments.”
While DCV will initially launch digitized securities using a central private database, the technology is DLT-enabled to support the issuance, registry and settlement of tokenized assets on distributed ledgers as the broader ecosystem evolves. Nasdaq’s CSD technology is fully interoperable with other depositories and can be readily integrated into existing and future payment networks.
This announcement marks a significant expansion in Nasdaq’s partnership with DCV. Last year, the company replaced its legacy system with Nasdaq’s CSD platform which significantly enhanced the performance, speed, and scalability of its offering, increasing the processing speed of its operations over one hundred times faster. With these improvements, DCV has been able to enhance services across the Chilean financial ecosystem as well as more easily access international investors with standardized operations, messaging, and data infrastructure. For this reason, the company was awarded “Most Innovative Financial Infrastructure Company in Chile” last November.
Nasdaq’s Marketplace Technology business serves as one of the world’s largest market infrastructure technology providers, providing multi-asset solutions to more than 130 marketplaces, CCPs, CSDs and regulators in over 50 countries. It offers reliable and scalable technology across the trade lifecycle, helping organizations to drive efficiency, transparency, and liquidity with unparalleled resiliency.
Nasdaq (Nasdaq: NDAQ) is a global technology company serving the capital markets and other industries. Our diverse offering of data, analytics, software, and services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions and career opportunities, visit us on LinkedIn, on Twitter @Nasdaq, or at www.nasdaq.com.
Depósito Central de Valores S.A. (DCV) is a corporation established in accordance with Law 18,876 and its regulations, and directives of the Comisión para el Mercado Financiero, (Commission for the Financial Market, CMF). DCV is entitled to receive public offering securities under deposit for transfer between depositors as per this Law. DCV’s purpose is to electronically process and register transfer transactions in stock exchange and the over-the-counter market, and coordinate and provide the necessary information for financial settlement of such transactions.
DCV set itself a major goal of evolving Chile’s post-trade market infrastructure to address immediate operational and performance needs, while preparing for future growth and business initiatives. To accomplish this mission, DCV tapped Nasdaq as its technology partner and provider.
Nasdaq: Andrew Hughes
+44 (0)7443 100896
DCV: Patricia Rojas
+56 9 54128522