One more promising partnership in the blockchain sphere is coming. This time Euroclear and itBit, a financial services company delivering blockchain services for capital markets, teamed up to develop a next generation settlement service for the London gold market.
Traditionally, the process of unallocated gold settlement is rather capital-intensive. Euroclear and itBit aim to minimize risk leading to a reduced capital charge, deliver true delivery versus payment and reduce balance sheet constraints. The partnership is based on the itBit’s blockchain infrastructure technology and flagship product, Bankchain. The Bankchain product is a clearing and settlement network that facilitates and accelerates post-trade processes for financial institutions using the blockchain technology.
Angus Scott, Director, Product Strategy and Innovation at Euroclear, commented: “Euroclear is pleased to be working with itBit on this initiative. As an open and resilient infrastructure, our strategy has been to work with relevant industry stakeholders. We have also created an advisory group, which recently convened to discuss the building of the new service with the ambition to make the London bullion market more efficient.”
Chad Cascarilla, CEO of itBit, added: “We are excited to be partnering with Euroclear to develop a trusted digital infrastructure for gold. Precious metals are the first use case for Bankchain, and London bullion is a market in which a distributed ledger can have an immediate benefit.”
Euroclear is a trusted provider of post-trade services. The company has been working with leading financial institutions for more than 60 years helping settling domestic and cross-border securities transactions, safekeeping investments and managing the risks and exposures arising from transactions. The team of professionals based in Europe, Asia, the Middle East and the Americas aim at providing personalized support.
The Euroclear group includes Euroclear Bank which is rated AA+ by Fitch Ratings and AA by Standard & Poor’s as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. Euroclear holds total assets in the value of €27.5 trillion. Annually, the Euroclear group settles securities transactions valued at €675 trillion.
itBit is a financial services company that focuses on the blockchain and leverages the technology to revolutionize the post-trade business across traditional capital markets. The company was a pioneer in the industry when developed Bankchain, a permissioned distributed network that expedites and secures the clearing and settling of assets. Besides Bankchain, itBit offers digital currency trading services, digital asset trust and custody services. The company states empowering individuals and financial institutions to quickly trade any asset at any time anywhere in a trustworthy way.