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Euroclear pencils in 2017 for bullion on blockchain roll out

19 December 2016  |  17920 views  |  0 Gold bar stacked 1

Euroclear is set for a 2017 go-live for the application of blockchain technology in the London bullion market after completing its first pilot trades.

The depository says over 600 OTC test bullion trades were settled on the Euroclear Bankchain platform over the course of the two-week pilot. A number of leading market participants in the London bullion market were involved in the test run, including Scotiabank, Société Générale, Citi, MKS PAMP Group and INTL FCStone.

All are part of the Euroclear Bankchain Market Advisory Group set up in June this year that now includes 17 participants working with Euroclear and blockchain platform provider Paxos in the roll-out of the new service.

Euroclear sayss the new platform will bring instant settlement and simultaneous delivery versus payment to the London bullion market, significantly minimising risk while reducing capital charges incurred under the current process.

Angus Scott, director, product strategy and innovation at Euroclear says: "This is a real first step in bringing a new settlement capability to the London bullion market that will help lower risk and simplify the post-trade process."

He says another market simulation will run early next year in preparation for a production launch later in 2017.

Elsewhere in the blockchain-in-finance world, the Banque de France has released details of a trial conducted with Labo Blockchain in collaboration with state-owned Caisse des Dépôts et Consignations and several unidentified French banks on the use of a consensus network for the management of creditor IDs under Sepa. It says a full assessment of the results will be carried out over the coming months.

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