Yesterday, asset tokenization firm Paxos
announced that Credit Suisse and Societe Generale will be among the first to use its post-trade settlement service for equities. The blockchain-based delivery versus payment (DvP) solution enables the simultaneous settlement of cash for securities.
The U.S. Securities and Exchange Commission (SEC) issued a no action letter which means that Paxos can go ahead with the service and plans to initially target a small number of broker-dealers for settling certain equities.
New York regulated Paxos, best known as a stablecoin firm, claims to be releasing the first new equities settlement service in almost 50 years. With a private, permissioned blockchain, the process is streamlined whereby costs are reduced, settlement is nearly instant, and capital ‘trapped’ in the old system can be released.
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