Paxos, Credit Suisse Claim First Blockchain-Based Settlement of US Equities
Today stablecoin issuer Paxos went live with its blockchain based equity settlement business. Credit Suisse and Nomura’s Instinet were the first firms to use the settlement service, which operates on Paxos’ own private, permissioned version of Ethereum. The event marked the first time since the formation of the Depository Trust & Clearing Corporation (DTCC) that U.S. equities settled in an automated manner in an outside system.
Why it matters:
- Paxos has been working towards this for more than 2 years. Last year, Paxos Trust Company announced the pilot would be given the green light from the SEC when it was granted no-action relief.
- Paxos Settlement service represents the first chip at disrupting the massive securities settlement market, currently dominated by the DTCC.
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