EY enters gold trading market, develops blockchain gold settlement tool

International consulting giant Ernst & Young (EY) and New York-based blockchain startup Paxos have announced a partnership to jointly develop new technology solutions for the gold market.

The goal of this cooperation is to provide new tools for the clearing and settlement process in gold trading. Both parties will use Paxos' blockchain network. It is reported that blockchain is the basis of this cooperation.

David Williams, Partner at EY Capital Markets Innovation, said:

We believe that the future capital market requires a stronger and more innovative ecosystem. This collaboration can revolutionize the market and set a benchmark for further cooperation between financial companies and market participants in the future.

Over the past year or so, the topic of how blockchain technology can reshape the functioning of the gold market has attracted a lot of attention.

Paxos is working on blockchain solutions, and this summer it launched a similar project with its bitcoin exchange and Euroclear. In recent months, Paxos has reorganized its business to focus more on blockchain solutions, primarily for banks and enterprises.

Many celebrities in the capital market are interested in using blockchain for gold trading. Last month, Michael Lewis, author of Flash Boys, a book about high-frequency trading, said he plans to build a new generation of gold exchanges based on blockchain technology.