Paxos wins SEC ‘no-action’ letter to settle equities on a blockchain
Paxos Trust Company has received no-action relief from the SEC to settle U.S. listed equity trades on a private, permissioned blockchain platform for broker-dealers. Two of the largest European banks, Credit Suisse and Société Générale, will be the first companies to utilize the new Paxos Settlement Service.
Why it matters
- A no-action letter from the SEC signals the commission will not recommend enforcement action, essentially giving the regulatory green light for a particular product or service
- Securities settlement has long run on outdated technology and this solution is believed to bring about substantial back-office efficiencies
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