Euroclear and pioneering Blockchain company Paxos, have announced a successful completion of the first pilot for their Euroclear Bankchain project. Over 600 OTC test bullion trades were settled on the Euroclear Bankchain platform over the course of the two-week pilot.
“The pilot has been very useful in helping us further refine the Bankchain platform,” said Seth Phillips, Bankchain Product Director at Paxos. “The level of engagement from market participants was extensive and they were excited by settlements enabled on a real Blockchain for the first time and to see how quickly their feedback could be incorporated into the platform.”
Angus Scott, Director, Product Strategy and Innovation at Euroclear added:
“This is a real first step in bringing a new settlement capability to the London bullion market that will help lower risk and simplify the post-trade process.”
The new Blockchain settlement service for London bullion is due to go live in 2017.
A number of leading market participants in the London bullion market were involved in the pilot, including Scotiabank, Société Générale, Citi, MKS PAMP Group and INTL FCStone. All are part of the Euroclear Bankchain Market Advisory Group that now includes 17 participants working with Euroclear and Paxos in the roll-out of the new service.
Euroclear Bankchain combines Euroclear’s strengths as an international securities depository and settlement provider and Paxos’ flagship Blockchain technical platform, Bankchain™, to bring instant settlement and simultaneous delivery versus payment to the London bullion market. The settlement of unallocated gold is a very capital-intensive process. Euroclear Bankchain will significantly minimise risk, leading to a reduced capital charge and reduced balance sheet constraints.
Over the coming months, Euroclear and Paxos will continue to work closely with the London bullion market and integrate feedback from the pilot into the Euroclear Bankchain service. Another market simulation will run early next year in preparation for a production launch later in 2017.
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.
Founder and publisher of industry publication Blockchain News (EST 2015), a partner at ICO services collective Token.Agency ($750m+ and 90+ ICOs and STOs), director of education company Blockchain Partners (Oracle Partner) – Vancouver native Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of some two dozen Blockchain startups and has written over 1500 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.Irish Tech News put him in the top 10 Token Architects in Europe.
Kastelein has an Ad Honorem - Honorary Ph.D. and is Chair Professor of Blockchain at China's first Blockchain University in Nanchang at the Jiangxi Ahead Institute of Software and Technology. In 2018 he was invited to and attended University of Oxford's Saïd Business School for Business Automation 4.0 programme. Over a half a decade experience judging and rewarding some 1000+ innovation projects as an EU expert for the European Commission's SME Instrument programme as a startup assessor and as a startup judge for the UK government's Innovate UK division.
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London (5x), Manchester, Minsk, Nairobi, Nanchang, Prague, San Mateo, San Francisco, Santa Clara (2x), Shanghai, Singapore (3x), Tel Aviv, Utrecht, Venice, Visakhapatnam, Zwolle and Zurich.
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He's written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com, and his work and ideas have been translated into Dutch, Greek, Polish, German and French. A journalist by trade, an entrepreneur and adventurer at heart, Kastelein's professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he's travelled for nearly 30 years as a Canadian expatriate living around the world. In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, 'The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he's raising three teenage daughters with his wife and sailing partner, Wieke Beenen.