Euroclear Bankchain Completes Second Pilot

Announcements, FinTech, Investing | April 12, 2017 By:

Post-trade services provider Euroclear and FinTech firm Paxos have completed a second pilot of their Euroclear Bankchain settlement service for the London bullion market.

Euroclear Bankchain is a settlement service designed to reduce risk, improve efficiency, and minimize balance sheet constraints for gold market participants.

The first pilot was completed in December 2016, when the platform settled 600 over-the-counter test bullion trades over a two-week period. 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.

The second 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 service is due to go live later this year.

“It has been exciting to watch the growth of the Euroclear Bankchain pilot program over the last month,” said Paxos Bankchain Product Director Seth Phillips. “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.”

“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,” said Euroclear Head of Product Strategy and Innovation Angus Scott. “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.”