The blockchain undertaking between Belgium-based settlement provider Euroclear and US startup Paxos has come to a sudden end. The companies had partnered to provide a settlement service utilizing blockchain technology for the London gold market.
Both Still Committed
In spite of severing the relationship with Paxos, Euroclear continues to pursue a solution for the London market. Head of communications and relations Christine Vanormelingen said:
“Not all of the startup collaborations come to a conclusive end, that is part of how you develop an innovation strategy. We remain committed to offering a solution to the London bullion market.”
Paxos, for its part, will continue to pursue a solution independently as well. The company has announced a release by 2018. Both systems will seek to provide a smooth and cash-efficient system for settlement of unallocated gold.
The announcement comes as a bit of a surprise because of the recent successful tests of the system. The partnership had already tested the solution with several participants, including Citigroup Inc, Societe Generale, Scotiabank and INTL FCStone Inc.