Paxos will apply for a clearing agency license

Paxos is preparing an application to the US Securities and Exchange Commission (SEC) for an official clearing license. The firm plans to get registered by the end of 2021.

We’re thrilled to announce that Instinet and @CreditSuisse settled US equities trades on a same-day settlement cycle (T + 0) via Paxos Settlement Service. Our blockchain-based network is revolutionizing securities settlement.– Paxos (@PaxosGlobal) 

April 6, 2021

Prior to this, Paxos successfully completed a pilot project in which Credit Suisse and Instinet, a division of the investment bank Nomura Holdings, completed a securities transaction with settlements through the company’s blockchain platform.

The firm noted that the Paxos Settlement Service solution made it possible to complete financial transactions on the same day, although it usually takes two days for the US stock market. 

“The settlement of US stocks is opaque and involves unnecessary delays, capital expenditures and expenses. We are working hard to improve the process for the benefit of all market participants. A modernized settlement system can create safer, more equitable and open capital markets that foster innovation, ”said Paxos CEO Charles Casarilla.

According to the company, the pilot deal was the first time that blockchain technology was actually used in the US stock market.

As a reminder, Paxos has also applied for a nationwide trust bank license.

In December, the company raised $ 142 million in a funding round involving payment giant PayPal, which had previously selected it to manage assets for its cryptocurrency service.

Leave a comment