Paxos Settlement Service Will Be First Blockchain-Enabled Settlement Product to be Used in Live Environment for U.S. Listed Securities
Credit Suisse and Société Générale First to Utilize Service
NEW YORK — October 28, 2019 — Paxos Trust Company, a New York-regulated financial institution that digitizes and mobilizes assets, today announced it received No-Action relief from the staff of the U.S. Securities and Exchange Commission (SEC) to introduce Paxos Settlement Service. Following the No-Action letter, the innovative blockchain settlement platform will soon begin processing transactions for a limited number of broker-dealers for certain listed U.S. equity securities.
Credit Suisse and Société Générale will be the first in a group of early adopters to use Paxos Settlement Service, settling U.S. equities outside the legacy infrastructure for the first time in nearly half a century. The solution will help clients achieve meaningful reductions in fees and gain access to capital otherwise trapped in the legacy settlement system.
Paxos Settlement Service is a private, permissioned blockchain solution designed to allow two parties to bilaterally settle securities trades directly with each other. The platform, which will be the first live application of blockchain technology for U.S. equities, enables settlement of securities trades more cost-effectively and securely than the legacy system. It allows for the simultaneous exchange of cash and securities to settle trades and is backward-compatible with current processes, simplifying integration.
Charles Cascarilla, Chief Executive Officer and Co-Founder of Paxos, stated, “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.”
Emmanuel Aidoo, Head of Digital Asset Markets at Credit Suisse, commented, “At Credit Suisse, we are committed to exploring innovative applications of blockchain technology that can improve our business, as well as our clients’ experience. 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 this product across numerous asset classes in the future.”
Jeffrey Rosen, Chief Operating Officer, Americas Global Markets at Société Générale, added, “By implementing Paxos Settlement Service as an early adopter, we will be able to tailor the system to our needs and introduce a technology that can positively impact our cost structure in both the immediate and long-term. This service has the ability to deliver meaningful benefits to our operations and business and we are excited to be on board.”
Cascarilla added, “We look forward to working with our early adopter partners to further develop the ecosystem. Together, we’ll create financial benefits and achieve operational efficiencies with blockchain technology that will facilitate an open financial system. We’re starting with U.S. listed equities, but this technology can be scaled to many asset classes across geographies and for all types of clients.”
Paxos is a New York-regulated financial institution on a mission to create a global, frictionless economy. By building infrastructure to enable the movement between physical and digital assets, Paxos is creating a future where all assets—from money to commodities to securities—are digitized and can move instantaneously, 24/7.
Today, as the first regulated Trust company for digital assets, Paxos technology makes it possible to tokenize, custody, trade and settle assets. Paxos products include: Post-Trade Confirmation Service, which has been used to confirm over $1 trillion commodities and FX trades; Paxos Standard (PAX), the world’s most liquid regulated stablecoin and more. With offices in New York, London and Singapore, Paxos takes a global view of modernizing the financial system. Learn more at www.paxos.com.