A New Alliance Established To Securely Track Precious Metal Trades Using Blockchain
Financial technology firm Paxos has formed a partnership with INTL FCStone Inc’s precious metals division. The department will now be using Paxos Confirmation Service — a tool built specifically for the precious metals arena — to instantly automate daily trade confirmations and reduce human error.
Paxos seeks to unlock capital and create value with products that eliminate trade risk, while INTL FCStone provides market intelligence, post-trade services and financial services execution throughout the global financial market. According to Chad Cascarilla, CEO and co-founder of Paxos- the precious metals industry is prone to many of the same issues one finds with traditional banking institutions. He says, many of the processes that the precious metals industry uses today to confirm and settle trades are manual and prone to human error.
Confirmations, metal transfer instructions and wire instructions sent via email, are notoriously bad for information security. Email is rarely encrypted, and a simple keystroke error can cause an email to be sent to the wrong recipients, so information is very vulnerable. Using the Paxos system, INTL FCStone can match trade economics within seconds, thus eliminating several manual tasks and improving operational precision. Trades are quickly captured, and if issues ever arise, they are quickly identified and resolved.