Paxos Bitcoin Custodian Enters Precious Metals Market With Blockchain Post-Trade Confirmation Service
Paxos Enters Gold Market With New Post-Trade Confirmation Product
Paxos has recently announced that INTL FCStone Ltd, a London-based company of the financial field, will use its Paxos Confirmation Service. Paxos is also the parent company of itBit, a cryptocurrency exchange.
The Paxos Confirmation Service is a tool that was designed to streamline the process of post-trade confirmation for the market of precious metals. According to the company, this service is only the first phase of a plan of the company to use the blockchain technology to offer post-trade solutions for precious metals and some other similar markets.
The CEO of Paxos, Charles Cascarilla, stated that the entire market is anachronistic and that this new post-trade technology will create leverage in terms of automation and will considerably free the capital that can be normally tied up.
Modernizing the Precious Metal’s Market
Before the use of this technology, the precious metal market generally required the two parties involved in a certain transaction to double check the price, volume and the other details of each transaction before it is complete.
This is often made via email or phone. However, it is estimated that the error rate for this process is very high and can be up to even 15%. By using the new Paxos Confirmation Service, the process can be completely automated and this will greatly reduce this margin of error.
This new service is not based on the blockchain technology, but the company has received approval from the New York’s Department of Financial Services for Bankchain, which is a blockchain-based company.
By using Bankchain, the CEO of the company states that Paxos will be able to move physical assets like gold, for instance, without needing intermediaries, which is the next step for the evolution of the company.
Paxos has recently announced that it raised over $65 million USD in a Series B funding round. According to Cascarilla, these funds will be used to maintain the infrastructure of the company and to allow new projects to flourish. Other plans of the company include introducing products for commodities and FX in the next months.
At the moment, Paxos has about 80 employees in three different offices located in New York, London and Singapore.