A partnership between the trusted
provider of post-trade services, Euroclear, and the financial technology
company, Paxos, specializing in Blockchain implementation solutions, announced
that the second pilot of their Euroclear Bankchain had been completed.
The project is a Blockchain settlement service for the London bullion that is set to
go live later this year.
Two pilot
programs
The first pilot program of the Euroclear Bankchain
took place in December 2016 and involved over 600 OTC test bullion trades being
settled on the platform over a period of two weeks.
It was co-ordinated through the Euroclear Bankchain
Market Advisotry Group that includes participants working with Euroclear and
Paxos in the roll-out of the new service.
The recently concluded second pilot program took place over two days and included
16 market participants including Citi, Société Générale, MKS PAMP Group, INTL
FCStone Ltd, Barrick Gold Corporation, NEX EBS BrokerTec and ED&F Man. The
pilot program saw over 100,000 settlements.
Seth Phillips, Bankchain Product Director at Paxos,
said of the project:
“It
has been exciting to watch the growth of the Euroclear Bankchain pilot program
over the last month. We doubled the number of firms and significantly increased
interaction as participants were spread across six countries and four time
zones. Most importantly, we're proving that the platform can deliver lower
costs and lower risk for the London gold market.”
Developing
the new market infrastructure
Euroclear and Paxos have both been working closely
with the London bullion market test and receive feedback on the platform.
Angus Scott, Head of Product Strategy and Innovation
at Euroclear adds:
"We
are encouraged by the extensive engagement of market participants in this
second pilot and will continue as we further develop this new market
infrastructure for the bullion market. The feedback provided is of great
importance to make sure that our service will deliver real added value to the
London bullion market through transparency, capital reduction and delivery
versus payment settlement."
Paxos is a financial technology company delivering
pioneering Blockchain solutions for global financial institutions. Its
flagship service is Bankchain, a next-generation Blockchain settlement platform
that is transforming post-trade across capital markets. Bankchain delivers
instantaneous settlement and greater automation, offering market participants
reduced counterparty risk, lower capital requirements and increased operational
efficiencies.
Euroclear group is the financial industry's trusted
provider of post trade services. At the core, the group provides settlement,
safekeeping and servicing of domestic and cross-border securities from bonds,
equities and derivatives to investment funds. Euroclear is a proven, resilient
capital market infrastructure committed to delivering risk-mitigation,
automation and efficiency at scale for its global client franchise.
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