TD Securities Partners with Paxos

By implementing blockchain technology for transaction settlements, TD Securities has made a significant stride in the precious metals industry by selecting Paxos Settlement Service for Commodities.

By implementing concurrent cash and commodity transaction settlements, this partnership optimizes the operations of TD Securities in the traditional and digital precious metals markets.

TD Securities has chosen Paxos to supply a settlement service for commodity transactions utilizing blockchain technology. This initiative will automate a sector that has historically lacked such systems.

This advancement can potentially revolutionize the methodology of commodities trading by addressing the persistent lack of automated settlements and confirmations.

According to Joe Quinlan, the Global Head of FX & Commodities Middle Office at TD Securities, crucial components in establishing a secure settlement for the commodities market are bridging the longstanding gap between cash and asset settlement networks and collecting settlement obligations in a controlled manner that mitigates risk.

Quinlan emphasized the significance of synchronized cash and asset settlement networks and the controlled collection of settlement obligations.

“In addition to the risk reduction, our participation in this settlement network enables us to increase the overall efficacy of our settlement processes by implementing substantial benefits.”

Paxos is a central organization in the realm of regulated blockchain infrastructure and tokenization, contributing to the development of a financial system that is more transparent and adaptable.

The organization’s significant investment and partnerships with illustrious institutions such as Bank of America and PayPal to facilitate asset tokenization, custody, and transaction services demonstrate its influence on the financial sector’s evolution.

Paxos’ Head of Growth of Commodities, Anoushka Rayner, underscored the reciprocal benefits of diminished credit risk and enhanced capital efficiency.

Paxos, according to Rayner, functions as a central center for all counterparty settlements and facilitates simultaneous payments.

“Complete automation of TD Securities’ commodities operations, from post-trade confirmation to final settlement, will enable the firm to optimize its operations,” she concluded.

Due to regulatory challenges encountered by prominent cryptocurrency exchanges in the United States, Paxos experienced an initial setback in the year.

It was reported in February that the New York State Department of Financial Services (NYDFS) was investigating.

The firm halted the minting of the Binance-affiliated stablecoin BUSD a few days later, responding to rumors that the Securities and Exchange Commission (SEC) also has legal intentions against it.

Despite this, Paxos continued to provide support for additional stablecoin developments. The company partnered with Crypto.com and PayPal in September regarding a new USD-pegged token from the payment colossus PYUSD.