TD Securities, part of TD Bank Group, has hired Paxos to provide settlement for commodities, according to a corporate statement.
Paxos is a top digital asset firm that pursued a compliance-first approach which has led it to ink partnerships with multiple large enterprises. TD, based in Toronto, is the sixth largest bank in North America by assets and serves over 27.5 million customers.
Paxos explains that by leveraging its blockchain-based services, it is able to facilitate the simultaneous settlement of cash and commodities trades. This is predicted to streamline both traditional and “digital precious metals” trades.
Joe Quinlan, Global Head of FX & Commodities Middle Office at TD Securities, said they are bridging the gap between cash and asset settlement in a way that mitigates risk while increasing overall efficiency.
Paxos Head of Growth for Commodities, Anoushka Rayner, added that by using their services, credit risk is reduced, and capital efficiencies are realized by 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.”
Paxos aims to “re-platform” the financial system to enable assets to move instantaneously anywhere in the world. Other firms that are collaborating with Paxos include PayPal, Mastercard, Bank of America, and more.