Bank of America to Speed Up Stock Trade Settlement Using Paxos Blockchain Network

2021-5-18 22:03

Crypto firm Paxos has welcomed Bank Of America to its blockchain-based network for settling US equities.

According to Bloomberg, Bank of America has become the latest US bank to join the Paxos Network for blockchain stock settlement. The Paxos network facilitates the quick settlement of securities.

European banking giant Credit Suisse and Nomura Holdings Inc's Instinet already use the network known as Paxos Settlement Service.

Improving Return-on-Assets for BoA

Speaking on the new development, the Bank of America's head of financing and clearing, Kevin McCarthy, said joining the Paxos network would help improve the return-on-assets in the business, which he said has been a challenge for the bank.

Paxos Settlement Service is an alternative settlement platform to existing market infrastructure. It was launched in 2020 after receiving a no-action relief from the US Securities and Exchange Commission (SEC) in October 2019. Paxos has also applied for a clearing license with the SEC.

The CEO of Paxos, Chad Cascarilla, said his platform could threaten the Depository Trust & Clearing Corp. (DTCC), which currently dominates equity settlement. The DTCC offers a “T+2” settlement process via legacy software. The DTCC settlement takes up to two days and only offers same-day settlement for trades are recorded on or before 11 a.m.

This is unlike Paxos that settles stock trades within minutes using the blockchain. Paxos runs a permissioned version of the Ethereum blockchain.

Using Blockchain In The Stock Market

In recent times, financial firms worldwide have begun to explore how blockchain can help address inefficiencies in the financial markets. Even as the total value of stocks traded globally is pegged to be around $77.5 trillion, the complexity in stock-related transactions persists. The stock market still has problems regarding the time it takes for transactions to be approved and the operational costs.

NASDAQ is one stock exchange that has been a front-runner when it comes to adopting blockchain. The exchange already uses blockchain technology to issue and manage private securities. Most of the other exchanges are still exploring prototypes and looking into the opportunities in blockchain technology.

Banks like JP Morgan Chase have also leveraged blockchain technology to develop specialized payments systems and offer niche banking products. Since last year, JPMorgan has used the blockchain to execute intraday repurchase agreements totaling billions of dollars.

The post Bank of America to Speed Up Stock Trade Settlement Using Paxos Blockchain Network first appeared on BitcoinExchangeGuide.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Time New Bank (TNB) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.01 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0020147 (-100%)

bank paxos network america settlement blockchain stock

Источник: bitcoinexchangeguide.com

bank paxos → Результатов: 26


Bank of America присоединился к блокчейн-платформе от Paxos

Американский финансовый конгломерат Bank of America присоединился к Paxos Settlement Service — блокчейн-платформе для расчетов по ценным бумагам. The post Bank of America присоединился к блокчейн-платформе от Paxos first appeared on ForkLog.

2021-5-18 19:43


Berkeley Professor Questions Stablecoin Viability in Unflattering Op-Ed

University of Berkeley Professor Barry Eichengreen has taken a swipe at the viability of stablecoins in an op-ed published on Project Syndicate. The critique, entitled “The Stable-Coin Myth,” argues stablecoins are not automatically "viable" just because they are pegged to an asset, though Eichengreen does believe they have an advantage over "conventional cryptocurrencies" such as bitcoin which he says "is highly unstable" and "unattractive as units of account.

2018-9-13 18:07


Партнеры Currencies.ru

Реклама на Currencies.ru

Самое свежее на Currencies.ru

Blockchain Company Paxos Closes New Funding Round Worth $300 Million

Paxos, a blockchain startup with PayPal Holdings as a client, announced the recent conclusion of a Series D fundraising round. According to company CEO Charles Cascarilla, the funding session led by growth equity investment firm Oak HC/FT saw $300 million infused into the New York-based firm.

PayPal Partner Paxos Obtains Federal Bank Charter from OCC

Paxos is the latest company to obtain preliminary conditional approval from the U. S. Office of the Comptroller of the Currency (OCC) to establish a de novo National Trust Bank. This is the third such charter issued by the OCC, the top banking regulator, to a crypto native company.