The fixed part: obligation tracking
CTS keeps track of the obligations to other banks as client payments clear. Every obligation is available through CTS for metrics and reporting, regardless of which rail eventually settles it. This means the bank’s view of what it owes and is owed does not depend on the settlement network. The network discharges obligations: the record of them lives with the bank.The chosen part: the settlement rail
The rail is selected during onboarding and is custom per bank. The options are the ones described in Settlement Options: a tokenized deposit network, a stablecoin rail through the bank’s custody provider, or traditional rails. Settlement runs periodically or on demand, at a cadence set by what the bank is comfortable with and what its requirements allow.Settling through a consortium network
A bank that is a member of a tokenized deposit consortium, such as Cari, Canton, or Partior, sets that network up as its settlement mechanism. The bank deploys CTS; the network carries the settlement. Two boundaries matter here, and both are stated plainly because they surprise people:- Cosmos provides the integrations to these networks. It does not provide the legal agreements between the bank and the network, or between counterparties, that secure settlement requires. Membership, rulebooks, and bilateral agreements are the bank’s to arrange with the network.
- Netting is performed either by the settlement network or by CTS, depending on the network. Where the network nets, CTS still records every underlying obligation, so reporting is unaffected by who nets.
What a deployment involves
1
Deploy CTS
The bank runs Issuance, which is what records obligations as payments clear.
See Issuance.
2
Choose the rail at onboarding
Consortium network, stablecoin, or traditional rails. The choice is custom
per bank. See Settlement Options.
3
Arrange the network relationship
For a consortium rail, the bank joins the network and puts the required
legal agreements in place. CTS connects to it; it does not stand in
for membership.
4
Set the cadence
Periodic or on demand, based on the bank’s exposure appetite and
requirements. See How Settlement Works.