Euroclear collaborating with financial services company itBit to look into creating a settlement services for the London gold market, based on distributed ledger technology.
Through the partnership, post-trade service provider Euroclear and blockchain technology specialist itBit will explore ways to find a way of minimising risk in the process. This could lead to reduced capital charges, enable delivery-versus-payment and reduce balance sheet constraints.
The pair will use the itBit proprietary blockchain infrastructure technology along with its flagship product, the real-time clearing, tracking and settlement network Bankchain.
Angus Scott, director, product strategy and innovation at Euroclear, said: "Euroclear is pleased to be working with itBit on this initiative. As an open and resilient infrastructure, our strategy has been to work with relevant industry stakeholders."
Chad Cascarilla, CEO of itBit, added: "We are excited to be partnering with Euroclear to develop a trusted digital infrastructure for gold. Precious metals are the first use case for Bankchain, and London bullion is a market in which a distributed ledger can have an immediate benefit."
