Reuters: Euroclear and Paxos block chain gold settlement cooperation ended

nnnStorms: Belgian settlement provider Euroclear and Paxos, a US start-up company, have worked together to develop a block-chain settlement system for the London gold market. At present, the two sides announced that their cooperation has ended, but will continue to develop in their own areas.n
nnTranslated by: Inan
nEuroclear, a Belgian settlement provider, and Paxos, a US-based startup, announced on July 27 that the partnership between the two sides to develop chain-chain services for the London gold market has ended.n
nIts collaboration was announced in June 2016 to develop a new system to solve the London gold problem using Pakos’ block-chain technology.n
nEuroclear is one of the world’s largest clearing houses, and Christine Vanormelingen, head of communications and investment relations, said in an interview that it will no longer work with Paxos.n
nshe says:n
nn”Not all of the cooperation with the start – up companies are terminated, it is only part of the development of innovation strategy.We are still committed to the London gold market to provide solutions.n
nnPaxos evolved from itBit, and according to its statement, even if it is no longer working with Euroclear, Paxos will continue to develop its platform that is expected to be launched by 2018.n
nThe joint system was previously tested by at least 16 market participants, including Citigroup, Societe Generale, Fortune Scotland and INTL FCStone.n
nThe project aims to reduce the capital intensity of unallocated gold settlements for banks and other market participants by using block-chain technology.n
nThe block chain initially appeared as a system that supports digital currency bitcoin, which is a distributed transaction book that is maintained by a computer network on the Internet without the need for trusted third parties.n
nFinancial institutions are investing large sums in this area and working with global start-ups to test whether the technology can be used to simplify some tedious processes such as securities settlement.n
nEuroclear and Paxos are one of the most ambitious projects. While Wall Street is still excited about the block chain, the technology has not yet achieved large-scale deployment in mainstream financial markets, and skeptical people think its potential may be overstated.n
nSupporters say the technology is still in its infancy, and its main challenge in financial markets is to make large organizations agree to dramatically change their processes.n

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