Paxos, a provider of blockchain solutions to the financial services industry, has partnered with settlement house Euroclear to develop a blockchain settlement service for the gold market, called Euroclear Bankchain.
The announcement was made during a signing ceremony event at the SIBOS Annual Conference in Geneva, Switzerland.
Commenting on the partnership, Paxos CEO Charles Cascarilla said: "We are coming to market with a ground-breaking offering that will drastically impact the post-trade process and overall trading infrastructure within the global gold market.
“This product represents the first concrete blockchain use case for gold settlement in the London Bullion Market and is poised to benefit all investors and key stakeholders through our revolutionary Bankchain offering. We are pleased to commemorate our progress at today's signing, at this important industry gathering,"
Euroclear global head of innovation Luc Vantomme said: "As a neutral market infrastructure, with a track record of providing high quality, reliable post-trade services to some of the world's leading financial institutions, we are adopting a collaborative approach wherever possible, working with third-party innovators in ways that reward their innovation while simultaneously giving us flexibility.
“The settlement of unallocated gold is a very capital-intensive process. We are working to develop a service to reduce risk and balance sheet constraints."