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
LCH launches new SwapClear client account
15 August 2017 | London | Reporter: Drew Nicol
Global clearinghouse LCH has introduced a new type of client account within its SwapClear service that allows buy-side clients to deliver collateral directly and retain beneficial title
SWIFT to provide gateway for US real-time payments
15 August 2017 | New York | Reporter: Jenna Lomax
US banks will have the opportunity to use a single platform, Alliance Messaging Hub (AMH), for making real-time payments through TCH
LCH and Euronext secures 10-year deal on MiFID II derivatives
09 August 2017 | Paris | Reporter: Jenna Lomax
The deal allows for clearing services for listed financial and commodity derivatives for the next 10 years
Eurex Clearing calls default drill a success
03 August 2017 | London | Reporter: Jenna Lomax
Eurex Clearing successfully simulated the failure of a major clearing participant in a global fire drill in April, the clearinghouse has revealed
FDIC tells firms to prepare for T+2
31 July 2017 | Washington DC | Reporter: Mark Dugdale
US financial services firms should take appropriate steps to ensure they are prepared for the move to T+2 settlement on 5 September
Deutsche Börse engages T7 for cash
04 July 2017 | Frankfurt | Reporter: Drew Nicol
Deutsche Börse shifts cash trading onto T7 and Eurex introduces new derivative hedging tools for the buy side
New settlement netting service launches for OTC FX
03 July 2017 | London | Reporter: Stephanie Palmer
NEX Optimisation has launched its automated settlement netting service, which it calls the first of its kind in the industry
More clearing and settlement news