Paxos, a fintech company delivering blockchain solutions for the financial services industry, is working with ‘big four’ firm EY to develop blockchain solutions for the gold market.

According to the official release, the companies have collaborated for the rollout of a next-generation blockchain settlement service that brings instant settlement and true DvP (Delivery versus Payment) to the gold market for the first time.  

This follows the recent announcement from Paxos, which recently rebranded from itBit, that it working with Euroclear, one of the world's largest settlement houses, on the development of a blockchain settlement service for the gold market – Euroclear Bankchain.

EY has worked with industry bodies in the London bullion market in the past and will provide Paxos with services and consulting support. The companies will also work with gold market participants to facilitate industry-wide implementation of the new service, which is built on Paxos' blockchain settlement platform – Bankchain – a cloud-based platform-as-a-service (PaaS) solution transforming post-trade market infrastructures and back office processes for its global clients.

"Working with EY on the roll-out of our Bankchain gold settlement service is beneficial for delivering our solution to gold market participants," said Charles Cascarilla, CEO and Founder of Paxos. "EY brings both depth of understanding in market practices and breadth of skill sets in regulatory, financial, tax, operations and technology, all of which are necessary to get innovation like this off the ground."  

David Williams, Partner for Capital Markets Innovation at EY, emphasized on the need for stronger and more innovative ecosystems for the future of capital markets, and said:

"Gold market participants are showing interest in exploring how innovation can deliver tangible benefits. We see solutions such as Paxos' Bankchain as being very relevant and timely”.