Credit Suisse and Instinet have begun settling US securities on a bockchain-based post-trade platform supplied by Paxos.
Paxos Settlement Service is a private, permissioned blockchain designed to allow two parties to bilaterally settle securities trades directly with each other. Now operational, the service represents the first live application of blockchain technology for listed US equities.
Emmanuel Aidoo, head of digital asset markets at Credit Suisse, comments: “The initiative has the potential to deliver great efficiency and cost savings to the post-trade cycle. Paxos Settlement Service introduces blockchain technology that’s compliant with regulations and allows us to take important strides towards evolving market structure and unlocking capital that is tied up in legacy settlement processes.”
Alongside Credit Suisse and Instinet, French lender Societe Generale is also lined up to participate in the early adopter programme.
Paxos says it intends to apply for clearing agency registration with the SEC in 2020 so that it can offer the service to all street side broker-dealers.