On July 16th the blockchain-based ID2S Central Securities Depository (CSD) owned by Orange and Citi launched. The CSD is targeting the commercial paper market. It is processing trades from NowCP the new European commercial paper marketplace, also originated by Orange. Other participants that are live on the platform include CACEIS Bank, Crédit Agricole Corporate and Investment Bank, Orange Bank, and Natixis SA.
ID2S claims to be the first to offer real-time settlement of Money Market instruments in central bank money, via TARGET2-Securities.
“Together with NowCP as the innovative issuance and trading platform, ID2S has started the journey to deliver on our common vision to change the future of the European money markets,” said Andrea Tranquillini, CEO of ID2S.
The organisation plans to open up to issuers and their agents gradually.
ID2S is a European regulated entity based on SETL technology. It was originally a joint venture between SETL and Orange and is now 88% owned by Orange with the balance held by Citi.
One of the current ID2S participants is Natixis. It’s worth noting that the Head of Digital at Natixis, Frédéric Dalibard, is also Chairman at enterprise blockchain company R3.
SETL is known for its development of IZNES the French platform for trading investment funds. In March this year UK-based startup SETL, went into administration, a form of protection from creditors. It quickly emerged from administration in May. During that period its shares in ID2S were bought by the current shareholders, as well as intellectual property in the platform.
While in administration, a new company with the same management team bought the remaining SETL assets and will now focus on the technology side of things.
At the time SETL went into administration, a statement was published explaining the situation. “Having made an early investment in the development of ID2S, SETL Development Ltd recognises that as an early-stage technology firm, it is not sufficiently placed to contribute the capital required. As such, it is now seeking to place its ID2S holding with a larger financial services firm, one better placed to provide the capital required to support the growth trajectory.” Hence ID2S is currently owned by Citi and Orange.