Paxos to launch blockchain-based settlement platform for U.S. listed equities
Paxos Trust Co, who are a New York-based regulated financial institution have confirmed the firm will launch a blockchain-based settlement platform for a limited number of U.S. listed equities after the company received a “no-action” letter from the Securities and Exchange Commission (SEC).
A no-action letter from the SEC means the regulatory body will not take any enforcement action against the firm for a particular service or product.
"We've been working on this for about 18 months," said Ingram Melayna Ingram, director of product management at Paxos. "We've been working with many large firms on the sell side and buy side as well as other vendors to work on the initial design and the approach to taking it to market."
Paxos stated this is the first time in half a century that U.S. equities will be settled outside a traditional settlement system. Credit Suisse and Societe Générale on board for pilot.
Credit Suisse also commented saying
"We believe the process of securities settlement can be greatly optimized using blockchain, and with Paxos Settlement Service we will benefit from these efficiencies first hand," Emmanuel Aidoo, head of digital asset markets at Credit Suisse. "We see this as a significant and important milestone in our Digital Asset Markets strategy and foresee opportunities to leverage this product across numerous asset classes in the future."
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
