- 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.