Simultaneous Delivery-Versus-Payment Enables Frictionless, Safer Settlement for Commodities Trades
NEW YORK & LONDON, July 22, 2021 — Paxos, the first regulated blockchain infrastructure platform, today announced it has launched the Paxos Settlement Service for commodities. Paxos now facilitates the simultaneous settlement of cash and commodities trades, a first in the precious metals market. It delivers zero-risk settlement for commodities market participants with fully automated delivery versus payment (DVP) and streamlines settlement for both traditional and digital precious metals trades into one system. Thus far, the service has settled more than $1.5 billion in total commodities trades. Paxos Settlement Service is a multi-asset platform that is also live and settling trades on a daily basis in US equities markets.
Charles Cascarilla, CEO and Co-Founder of Paxos, commented, “Paxos uses blockchain based solutions to drive innovation in financial market infrastructure. Our platform significantly reduces settlement risk and unlocks meaningful capital efficiencies that improve intraday liquidity. The Paxos Settlement Service for commodities revolutionizes institutional settlement and opens this high-value market to more participants around the world.”
Barry Canham, Global Head of Metals at StoneX, added, “StoneX and Paxos, together, have driven significant technology and product innovation in the precious metals markets. We’ve joined this settlement network because we believe the time has come to help advance the critical systems that power our markets. We’re pleased to settle trades using their technology and believe it will reap meaningful benefits to our processes, mitigating various risks whilst increasing efficiency.”
Daniel Eld, Managing Director at Koch Metals Trading Limited, added, “Koch Metals sits at the cutting edge of diverse and complex markets. We’re focused on unlocking value wherever possible and creating mutual benefit for our customers, and believe that technology has the potential to meaningfully create efficiencies and mitigate risks of settlement in commodities markets. Outdated back-office infrastructure is an impediment to long-term value creation. We’re pleased to leverage Paxos’ custody and settlement services and collaborate with Paxos as they refine this settlement network alongside leading industry participants.”
Anoushka Rayner, Head of Commodities Growth at Paxos, added, “This is an industry leading development and our platform will transform commodities settlement. Paxos is building a global network with critical functions like multilateral payment netting to bring more efficiency and automation to settlement. We’re proud to collaborate with StoneX and Koch and look forward to onboarding more participants to the network.”
Paxos is the first regulated blockchain infrastructure platform. Its products are the foundation for a new, open financial system that can operate faster and more efficiently. Today, trillions of dollars are locked in inefficient, outdated financial plumbing that is inaccessible to millions of people. Paxos is replatforming the financial system to enable assets to instantaneously move anywhere in the world, at any time, in a trustworthy way.
Paxos uses technology to tokenize, custody, trade and settle assets. It builds enterprise blockchain solutions for institutions like PayPal, Bank of America, Credit Suisse, Societe Generale and Revolut. Paxos is a top-funded fintech company with more than $540 million raised from leading investors including Oak HC/FT, Declaration Partners, Mithril Capital and PayPal Ventures. With offices in New York, London and Singapore, Paxos takes a global approach to modernizing the financial system.
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