TD Securities Taps Paxos Settlement Service for Commodities to Facilitate Simultaneous Counterparty Settlement

Paxos, the premier regulated blockchain infrastructure platform, announced that the investment bank TD Securities has become the latest financial institution to choose the Paxos Settlement Service for Commodities to facilitate fully automated settlement and streamline operations for both traditional and digital precious metal trades. Notably, this marks Paxos' debut in facilitating the simultaneous settlement of cash and commodities trades in the precious metals market.

"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," said Joe Quinlan, Global Head of FX & Commodities Middle Office at TD Securities. "side from the risk mitigation, joining this settlement network enables us to drive significant benefits to our processes, increasing our overall settlement efficiency."

"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," said Anoushka Rayner, Head of Growth for Commodities at Paxos. "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 is a well-known stablecoin issuer in the industry, having previously worked with crypto giants FTX, which has filed for bankrupt last year, and Binance. In February this year, Paxos stopped issuing the Binance USD (BUSD) stablecoin​ at the request of the New York Department of Financial Services (NYDFS).