Paxos Settlement Service Processes $50bn in Commodities

Paxos Settlement Service Processes $50bn in Commodities

Paxos, a regulated blockchain infrastructure platform, confirms the Paxos Settlement Service has settled nearly $50 billion in total commodities.

The Paxos Settlement Service for Commodities streamlines the settlement process to handle all complexity for market participants across gold, silver, platinum and palladium. Importantly, the service allows for a centralized operational process for settlements with counterparties that are both on and off the Paxos network.

The Paxos Settlement Hub delivers efficient, cost-effective, safer settlement with full transparency on the movement of both metals and cash in a single user interface. The Paxos Settlement Hub is now an all-encompassing network that, in addition to streamlined settlement, offers the options of simultaneous settlement with other Paxos Settlement customers. This ensures safe settlement for trading counterparties that are not yet Paxos customers.

By connecting the London Precious Metals Clearing Limited and the cash-based correspondent banking network, Paxos allows customers to pre-fund and multilateral net settlements, creating a single platform where settlement occurs for both metals and cash.

Anoushka Rayner, Paxos’ Head of Commodities Growth, commented, “While the over the counter (OTC) market offers many benefits, it also creates operational complexity and introduces settlement risk for participants. The lack of standardization and optimization leaves firms open to unnecessary risks as settlement occurs via different networks. However, those risks can be mitigated with the right technology. The Paxos Settlement Hub for Commodities is the first platform to connect the metals and cash settlement networks. Due to the Paxos Trust Company underpinning settlement, payments are easily managed and errors are minimized. Furthermore, funds are also securely held in a bankruptcy-remote account, fully segregated. Paxos makes settlement transparent and seamlessly controls the swap of metals and cash.”

The network growth for Paxos Settlement Hub looks very promising as banks increase their pace to adopt services to not only bring efficiency today, but to also future-proof their technology strategy for the digital transformation on the horizon.

Source: Paxos

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