Paxos, the leading regulated blockchain infrastructure platform, has introduced the Paxos Settlement Hub for Commodities.
This additional feature to the Paxos Settlement Service solution streamlines the settlement process to handle all settlements for market participants across gold, silver, platinum and palladium. This functionality 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 offers streamlined settlement with the options of simultaneous settlement with other Paxos Settlement customers and 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. 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.
Anoushka Rayner, Paxos’ Head of Commodities Growth, commented, “Settlement has always been a pain point causing significant risk for commodities market participants. The Paxos Settlement Hub for Commodities makes it possible for financial institutions to significantly minimize risk. This is the first time metal and cash settlement networks are connected, allowing for simultaneous and netted settlement. We’ve reduced the amount of assets needed to make settlement, giving the market a never seen before level of efficiency. Because a Paxos Trust bankruptcy-remote account underpins settlement, payments are easily managed, errors are minimized and funds are securely held and fully segregated.”
Rayner added, “We’ve unblocked network-limiting challenges by managing settlement for both on and off network customers, which delivers immediate value for all precious metals market participants. Standardization, automation and efficiency are beneficial for all in the market.”
In the next year, Paxos will further improve precious metals settlement by using regulated tokenized assets. Tokenized precious metals will increase the velocity of these assets, free capital trapped in slow settlement and safely broaden access to the market, all while further reducing costs.