Bank of America Leans into Blockchain to Speed Settlements

The news comes as more financial institutions begin to lean into blockchain technology. JP Morgan Chase & Co. has been using an Ethereum-based system that allows the execution of overnight repurchase agreements since last year.

article-image

Source: Shutterstock

share

key takeaways

  • Bank of America Corp. has joined Paxos Settlement Service
  • Credit Suisse Group and Nomura Holdings’ Instinet are also users of Paxos’ platform

In Wall Street’s latest move into the crypto space, Bank of America Corp. has joined Paxos Settlement Service, allowing certain stock trades to be settled in minutes rather than days. 

Credit Suisse Group and Nomura Holdings’ Instinet are also users of Paxos’ platform, which launched in 2019 when the US Securities and Exchange Commission approved the pilot program. 

Bank of America has been conducting internal transactions over the past few months. The bank hopes to offer the service to clients, if approved as a clearing agency, Bloomberg reported Monday. 

The news comes as more financial institutions begin to lean into blockchain technology. JP Morgan Chase & Co. has been using an Ethereum-based system that allows the execution of overnight repurchase agreements since last year. Citigroup may soon be joining Goldman Sachs and BNY Mellon in offering crypto services to clients. 

Paxos Settlement Service is a post-trade platform that can be used to settle US securities trades with the potential to disrupt the Depository Trust & Clearing Corp.’s long-standing capitalization over equities markets. 

The platform enables same-day settlement for trades conducted throughout the day, the legacy system typically takes two days. Normally, same-day settlement can only occur if the trade is completely by 11AM. When trades are waiting to be settled, money buyers are sending to sellers is inaccessible. 

Tags

Upcoming Events

HYATT REGENCY SALT LAKE CITY

TUES, OCT. 8, 2024

Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

hivemapper.jpeg

Research

We believe crypto market participants overlook Hivemapper’s fundamental potential due to a poor understanding of both the niche map data market and Hivemapper’s positioning relative to incumbents. Hivemapper’s token model catalyzes both a cost and product advantage via unmatched map freshness and near real-time accuracy, which is its wedge into a market characterized by stale data and high data collection costs. Its current and potential future product suite may represent one of the strongest possibilities for PMF in crypto today.

article-image

👨‍⚖️ SBF’s courtroom sequel: Plus, Coinbase’s legal loss was DeFi’s gain

article-image

Public mining companies have been acquiring sites, refreshing machine fleets and diversifying business models in preparation for the event

article-image

Exploit shows centralization can sometimes be an asset

article-image

The Fidelity Ethereum Fund, like other proposed ETH ETFs, seeks to stake a portion of its assets, according to the firm’s Wednesday registration statement

article-image

The DAO first voted on enabling SAFE transfers over a year ago