Blockchain firm itBit teams up with Euroclear
Post-trade specialist Euroclear and New York-based blockchain start-up itBit are working together on a ‘next generation’ settlement service for the London gold market.
A joint statement cited the very ‘capital-intensive’ process when it comes to settlement of unallocated gold.
Both firms plan to develop a service to significantly minimise risk leading to a reduced capital charge, deliver true delivery versus payment and reduce balance sheet constraints.
Euroclear has partnered with itBit based on its proprietary blockchain infrastructure technology and flagship product, Bankchain.
The Bankchain product is a private network of trusted participants that clears, tracks and settles trades in close to real-time.
Angus Scott, director, product strategy and innovation at Euroclear said: “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, chief executive 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."
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