INTL FCStone, a global provider of financial services, has started using technology from Paxos, a blockchain and cryptocurrency startup, to automate its trade confirmations. The firm will use the Paxos Confirmation Service for its precious metals division at its London unit, Paxos announced on Wednesday.
Paxos’ confirmation service is a system built to address the post-trade needs of the precious metals market. Specifically, the service claims to automate trade confirmations, which can reduce human error and reconcile trades immediately.
Speaking to Finance Magnates Seth M. Phillips, Executive Director at Bankchain Precious Metal, part of Paxos, said: “through Paxos Confirmation Service, INTL FCStone can eliminate thousands of manual tasks every day while improving operational precision.”
“INTL FCStone and its counterparties can electronically match trade economics almost instantaneously after booking through a simple Web interface or more sophisticated API access. Both firms get the benefit of knowing trades are either captured correctly or problems are quickly identified and resolved.”
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“This service is for confirming trades. We will be releasing products in the future that will help with further steps of post-trade processes, including settlement via blockchain.”
The firm will use the technology to confirm the thousands of trades it executes on a daily basis. In addition, the service will allow the company and its counterparties to quickly match trade economics electronically after booking.
Commenting on the partnership, Charles Cascarilla, the CEO of Paxos, noted: “Our mission has been to build products that simplify post-trade, freeing up capital and decreasing cost. This is an important milestone as the first stage of our settlement offering goes into live production by serving such a trusted partner as INTL FCStone and its counterparties.”
Paxos shifts its focus back to cryptocurrencies
The startup was founded in 2012 as Bitcoin exchange itBit. Through itBit, the firm offers exchange and custody services for Ether, Litecoin, Stellar Lumens and Bitcoin Cash. The service also aims at emerging cryptocurrencies, by using its own virtual currency exchange. Following its launch, the company shifted its focus to providing services using blockchain and rebranded to Paxos.
However, the company is seeking to revive the crypto side of its business. This is due to the rise in popularity of cryptocurrencies. Earlier this year in June, Finance Magnates reported that Paxos received additional approvals from the New York Department of Financial Services to expand its services to include Ether, Litecoin, Stellar Lumens and Bitcoin Cash on its crypto exchange. This added on to its previous approvals to offer bitcoin custody and trading services.