Paxos’s blockchain settlement platform reports nearly $50 billion in settled precious metals

Rick Steves

“While the over the counter (OTC) market offers many benefits, it also creates operational complexity and introduces settlement risk for participants.”

Paxos has reported nearly $50 billion in settlement volumes processed by the Paxos Settlement Service for Commodities, which handles the settlement process for market participants across gold, silver, platinum and palladium.

The Paxos Settlement Service allows for a centralized operational process for settlements with counterparties that are both on and off the Paxos network.

OTC market creates operational complexity and introduces settlement risk

Anoushka Rayner, Paxos’ Head of Commodities Growth, said: “While the over the counter (OTC) market offers many benefits, it also creates operational complexity and introduces settlement risk for participants. The lack of standardization and optimization leaves firms open to unnecessary risks as settlement occurs via different networks.

“However, those risks can be mitigated with the right technology. The Paxos Settlement Hub for Commodities is the first platform to connect the metals and cash settlement networks. Due to the Paxos Trust Company underpinning settlement, payments are easily managed and errors are minimized. Furthermore, funds are also securely held in a bankruptcy-remote account, fully segregated. Paxos makes settlement transparent and seamlessly controls the swap of metals and cash.”

The firm boasts the Settlement Hub, which delivers settlement with full transparency on the movement of both metals and cash in a single user interface. The service connects the London Precious Metals Clearing Limited and the cash-based correspondent banking network to allow customers to pre-fund and multilateral net settlements, creating a single platform where settlement occurs for both metals and cash.

Paxos is a regulated blockchain infrastructure platform that aims to open the financial system toward efficiency and speed and unlock trillions of dollars that are currently in inefficient, inaccessible, and outdated financial plumbing. Paxos pledges to replatform the system to allow assets to instantaneously move anywhere in the world, at any time.

The firm, which has raised more than $540 million so far, uses blockchain to tokenize, custody, trade and settle assets. Paxos has built enterprise blockchain solutions for PayPal, Interactive Brokers, Mastercard, MercadoLibre, Nubank, PicPay, Bank of America, Credit Suisse and Societe Generale.

Read this next

Interviews

FIA EXPO 2022: Interview with Trading Technologies

The derivatives trading industry has gathered in Chicago to attend the FIA EXPO 2022 on 14-15 November. 

Market News

What’s moving markets for the week ahead 

The US labor market and the OPEC+ meeting are the most important variables for next week.

Digital Assets

Payments innovator BVNK acquires SPS Ltd to become UK EMI licensed operator

“We believe that regulated, fiat-backed stablecoins combined with the best parts of traditional payments will provide the infrastructure needed to deliver this vision. We will continue to obtain new licences and build out our capabilities to provide our customers with an unparalleled offering.”

Technology

Innovations in Technology and the User Experience — A MarksMan Update

MarksMan Liquidity Hub, the go-to platform for crypto spot liquidity solutions, has just unveiled an exciting update with new UI/UX features.

Technology

Alveo adds Sentiment indicators, Tax, and Regulatory Risk data from SIX

“Market participants increasingly need on-demand access to our vast catalogue of global financial and investor protection related data.”

Technology

B2C2 taps KX to enhance analytics for institutional crypto

“KX technology is proven in enhancing a broad range of mission-critical data and trading systems across front, middle and back-office operations for the majority of the world’s leading tier-one banks, brokerages, and investment firms.”

Executive Moves

ADVFN appoints Amit Tauman as CEO

ADVFN operates global financial information websites for retail investors.

Institutional FX

HKEX launches Hang Seng TECH Index Futures Options, adds after-hours session

“The launch of the Hang Seng TECH Index Futures Options and enhancements to the broader suite of Hang Seng TECH Index derivatives today will provide global investors even more choice and flexibility, helping them to successfully manage their portfolios and risks.”

Industry News

Finastra opens Center of Excellence in Kuala Lumpur

Finastra has expanded its footprint by opening a Center of Excellence (COE) at Malaysia’s MRANTI Technology Park in Bukit Jalil, Kuala Lumpur.

<