The service is called Euroclear Bankchain and discussions around this partnership commenced at the beginning of 2016 summer when Euroclear, a large settlement houses, and itBit, which recently rebranded to Paxos, announced their collaboration to explore opportunities in creating a next generation settlement service for the London gold market.
Paxos’ flagship blockchain settlement platform, Bankchain, is a cloud-based platform-as-a-service (PaaS) solution transforming post-trade market infrastructures and back office processes for its global clients.
The announcement on Euroclear Bankchain was made at the SIBOS Annual Conference in Geneva, Switzerland, where Paxos and Euroclear officials and market participants celebrated their collaboration announced earlier this year.
Euroclear Bankchain combines Euroclear’s strengths as a leading domestic and cross border settlement provider and Paxos’ Bankchain to bring instant settlement and true delivery versus payment to the London bullion market. Its innovative tokenization process turns physical gold into digital gold tokens, reducing capital charges and opening new opportunities for market participants.
Digital gold tokens can be used as eligible collateral across the globe without leaving the vault. Several global exchanges and clearing houses accept gold as collateral for trading across multiple asset classes, not just in precious metals.
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