Yesterday Paxos announced that ABN Amro Clearing has joined the Paxos Settlement Service that uses blockchain to settle listed US equity trades. Other members include Bank of America, Credit Suisse, Instinet, Societe Generale and Wedbush.
The service uses a permissioned version of the Ethereum blockchain to enable two parties to settle transactions directly with each other. Currently, the solution is operating as a pilot under a No-Action relief latter from the SEC. The exemption was issued in late October 2019, providing a 24-month window that only leaves another six weeks. It also limited the platform to seven participants and there are now six.
“Paxos has demonstrated an ability to innovate and deliver compelling enterprise-grade solutions in a complex and high-value market,” said Greg Lee, Managing Director of Paxos. “By working closely with our industry clients, we’ve been able to streamline back office processes, offer scalable same-day net settlement and enable opportunities for business development.”
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