London
20 December 2016
Reporter: Stephanie Palmer
Pilot complete for London blockchain bullion service
Euroclear and Paxos have completed the first pilot for their blockchain settlement service for the London bullion market.

The platform, Euroclear Bankchain, settled over 600 over-the-counter test bullion trades over a two-week pilot. Participants included Scotiabank, Societe Generale and Citi, all members of the Euroclear Bankchain Market Advisory Group.

Due to go live in 2017, Euroclear Bankchain is intended to combine Euroclear’s capabilities as an international central securities depository and settlement provider with Paxos’s existing blockchain platform.

It is designed to bring instant settlement and delivery-versus-payment to the London bullion market, minimising risk, and reducing capital charge and balance sheet constraints.

Seth Phillips, Bankchain product director at Paxos, said: “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 of 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 Euroclear Bankchain Market Advisory Group now includes 17 participants working on the rollout of the new service. Euroclear Bankchain will run another market simulation in early 2017, in preparation for the launch date.

More clearing and settlement news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
SEC to move US to T+2
23 March 2017 | Washington DC | Reporter: Drew Nicol
Members of the SEC’s industry steering committee, including DTCC and SIFMA, were quick to praise the commission on the amendment
CloudMargin bring Nasdaq Clearing on board collateral platform
13 March 2017 | London | Reporter: Drew Nicol
CloudMargin has secured Nasdaq Clearing as a user of its web-based collateral and margin management solution
DTCC’s STP suite sees record-breaking 2016
08 February 2017 | London | Reporter: Stephanie Palmer
The Depository Trust & Clearing Corporation suite of institutional straight-through processing products processed a record number of almost 1 billion trades in 2016
Clearstream migrates to T2S
06 February 2017 | Frankfurt | Reporter: Mark Dugdale
Clearstream Banking Frankfurt has confirmed that it successfully migrated to the Target2-Securities platform over the weekend...
SIX x-clear extends to Nordics
19 January 2017 | Copenhagen | Reporter: Stephanie Palmer
SIX x-clear, the clearing arm of SIX Securities Services, has extended its services to the Nasdaq Nordic cash markets, offering an interoperable clearing solution for Denmark, Finland and Sweden...
SwapClear reveals record-breaking 2016
09 January 2017 | London | Reporter: Stephanie Palmer
LCH’s SwapClear service saw a record high in interest rate derivatives cleared in 2016, processing a total of over $665 trillion in 3.8 million trades...
Pilot complete for London blockchain bullion service
20 December 2016 | London | Reporter: Stephanie Palmer
Euroclear and Paxos have completed a pilot for their blockchain settlement service for the London bullion market...
More clearing and settlement news