In a groundbreaking move within the precious metals market, TD Securities has officially joined the Paxos Settlement Service for Commodities. Paxos, a trailblazing regulated blockchain infrastructure platform, is now facilitating the simultaneous settlement of both cash and commodities trades, marking a historic advancement in the industry.
As a key participant in the Paxos network, TD Securities is poised to leverage the platform’s capabilities to achieve fully automated settlement processes. This move is expected to bring unprecedented efficiency and operational streamlining to the realm of both traditional and digital precious metals trades.
The significance of TD Securities’ adoption of the Paxos service is particularly notable in an industry where many commodities trading firms still lack automated confirmations and settlement procedures. This strategic collaboration represents a crucial step toward establishing common standards and enhancing overall efficiencies in commodities settlement processes.
Joe Quinlan, Global Head of FX & Commodities Middle Office at TD Securities, said: “Bridging the longstanding gap between cash and asset settlement networks, as well as collecting settlement obligations in a controlled way that mitigates risk, are fundamental elements to creating safe settlement for the commodities market. Aside from the risk mitigation, joining this settlement network enables us to drive significant benefits to our processes, increasing our overall settlement efficiency.”
Anoushka Rayner, Head of Growth – Commodities, Paxos, added: “In plugging the gap between cash and asset settlement, credit risk is reduced and capital efficiencies are realised, delivering real benefits to market participants such as TD Securities from day one. Not only does Paxos deliver simultaneous settlement but the Paxos Settlement Service also acts as a hub to accommodate all counterparty settlements regardless of whether the counterparty is on the network. TD Securities will be able to optimise its commodities business with full automation from post-trade confirmation to final settlement.”
To know more about other trending usecases in the US financial services industry, like Generative AI, Open Banking, Buy Now Pay Later (BNPL), explore our other insights.
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