Paxos to Bring Blockchain Settlement for US-Listed Securities
- It will serve as an alternative to the legacy infrastructure of the NSCC.
Fintech startup Paxos is set to launch a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based settlement platform for US-listed securities amid obtaining a “no-action” permit from the Securities and Exchange Commission (SEC).
Announced on Monday, the New York-based startup has on-boarded Credit Suisse and Société Générale to utilize the new settlement services as its first two clients.
Based on a private and permissioned network, the platform will settle for a limited number of US-listed securities initially. It is the result of 18 months of the development process, while the go-ahead from the regulator was received after efforts of six months.
Making the system efficient with blockchain
Per Paxos, the platform will reduce fees and help clients gain access to capital otherwise trapped in the legacy settlement system. It will also allow the simultaneous exchange of cash and securities to settle trades and is compatible with current systems, simplifying integration.
Commenting on the development, Charles Cascarilla, co-founder and executive officer at Paxos, said: “The U.S. equities business continues to face unprecedented consolidation and economic pressures, requiring a comprehensive transformation of market structure. This is an important first step on our journey to reimagine the entire post-trade infrastructure, and one that creates immediate benefits for market participants.”
Meanwhile, the two partners also need to take permission from the financial market regulator to allow them to participate in the settlement process. Paxos is assuming that both its companies will receive SEC’s green light in the next 30 days.
“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. We see this as a significant and important milestone in our Digital Asset Markets strategy and foresee opportunities to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term this product across numerous asset classes in the future,” Emmanuel Aidoo, head of digital asset markets at Credit Suisse, said.
Fintech startup Paxos is set to launch a Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term-based settlement platform for US-listed securities amid obtaining a “no-action” permit from the Securities and Exchange Commission (SEC).
Announced on Monday, the New York-based startup has on-boarded Credit Suisse and Société Générale to utilize the new settlement services as its first two clients.
Based on a private and permissioned network, the platform will settle for a limited number of US-listed securities initially. It is the result of 18 months of the development process, while the go-ahead from the regulator was received after efforts of six months.
Making the system efficient with blockchain
Per Paxos, the platform will reduce fees and help clients gain access to capital otherwise trapped in the legacy settlement system. It will also allow the simultaneous exchange of cash and securities to settle trades and is compatible with current systems, simplifying integration.
Commenting on the development, Charles Cascarilla, co-founder and executive officer at Paxos, said: “The U.S. equities business continues to face unprecedented consolidation and economic pressures, requiring a comprehensive transformation of market structure. This is an important first step on our journey to reimagine the entire post-trade infrastructure, and one that creates immediate benefits for market participants.”
Meanwhile, the two partners also need to take permission from the financial market regulator to allow them to participate in the settlement process. Paxos is assuming that both its companies will receive SEC’s green light in the next 30 days.
“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. We see this as a significant and important milestone in our Digital Asset Markets strategy and foresee opportunities to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term this product across numerous asset classes in the future,” Emmanuel Aidoo, head of digital asset markets at Credit Suisse, said.