NEW YORK and LONDON, April 10, 2017 -- Euroclear, a trusted provider of post-trade services, and Paxos®, a financial technology company delivering pioneering blockchain solutions, are pleased to announce the successful completion of their second pilot for Euroclear Bankchain, the new blockchain settlement service for London bullion due to go live this year. The two day pilot included 16 market participants including Citi, Société Générale, MKS PAMP Group, INTL FCStone Ltd, Barrick Gold Corporation, NEX EBS BrokerTec and ED&F Man and saw over 100,000 settlements.
The first pilot program took place in December 2016 with over 600 OTC test bullion trades settled on the Euroclear Bankchain platform over the course of two-weeks. The pilot was coordinated through the Euroclear Bankchain Market Advisory Group that includes participants working with Euroclear and Paxos in the roll-out of the new service.
“It has been exciting to watch the growth of the Euroclear Bankchain pilot program over the last month,” says Seth Phillips, Bankchain Product Director at Paxos. “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.”
Angus Scott, Head of Product Strategy and Innovation at Euroclear says: "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."
Both Euroclear and Paxos have continued to work closely with the London bullion market executing successful pilots to test and obtain feedback on the Euroclear Bankchain service. Paxos and Euroclear are on schedule for a production launch later in 2017 for the Euroclear Bankchain service.
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. Paxos' management team is led by CEO and Co-Founder Charles Cascarilla and its board of directors includes former FDIC chair Sheila Bair, former Senator Bill Bradley, former chair of the Financial Accounting Standards Board Robert Herz, former chairman, president & CEO of Lotus Development Corporation Jim Manzi and former NYSE CEO Duncan Niederauer.
Euroclear group is the financial industry's trusted provider of post trade services. At the core, the group provides settlement, safe-keeping 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.
The Euroclear group includes Euroclear Bank which is rated AA+ by Fitch Ratings and AA by Standard & Poor's as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. The Euroclear group settled the equivalent of EUR 675 trillion in securities transactions in 2015, representing 191 million domestic and cross-border transactions. By December 2015, the group held EUR 27.5 trillion in assets for clients.
For more information about Euroclear, please visit euroclear.comEuroclear press contact: Craig MacDonald, firstname.lastname@example.org