More than $40M in listed US equity trades settled by Paxos Settlement Service since February 2020
According to the bank, Paxos Settlement Service is a private, permissioned blockchain solution designed to allow two parties to bilaterally settle securities trades directly with each other. The service represents the first live application of blockchain technology in the listed U.S. equities market. Paxos is operating the service under No-Action relief from the staff of the U.S. Securities and Exchange Commission (SEC). Since the initial launch in February, the first two participants, Credit Suisse and Instinet, have been using the technology to settle securities trades on a daily basis. Analysts say that with each additional broker-dealer, the benefits of the network increase, delivering greater savings and efficiencies to its participants.
“We’re transforming post-trade infrastructure in the securities industry,” said Charles Cascarilla, Chief Executive Officer and Co-Founder of Paxos. “The Paxos Settlement Service can reduce ongoing costs associated with settlement and unlock capital tied up in the legacy settlement system. The No-Action relief phase gives us the opportunity to grow our network and refine the service with early adopters while we build toward a scaled solution that delivers long-term benefits industry-wide,” Cascarilla added.
Jeffrey Rosen, Chief Operating Officer, Americas Global Markets at Societe Generale, said that, by streamlining equities settlements with Paxos, they will be able to deliver meaningful efficiency in their settlement operations in the long-term. “We’ve worked closely with Paxos to tailor the platform to our unique workflows and feel this is an important step forward to evolving market structure and optimizing the trading life cycle,” Rosen said.
Paxos can operate the Paxos Settlement Service with a total of seven broker-dealer clients under No-Action relief.