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
  • 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

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Flashnote Template (41).png

Research

We believe that few tokens at the application layer are diverging more from fundamentals than ZORA. Its fully-diluted P/S sits at 90x, pricing significant growth despite a consistent decline in weekly revenues since late July. We foresee an 80% decrease in protocol net margins due to a recent update to the fee structure that reduces trading fees from 3% to 1%, while boosting creators’ portion of the fee split. ZORA’s supply overhang also represents a near-term headwind, with 45% of ZORA’s supply (4.5B tokens or $350M at current prices) earmarked for the team & investors beginning to unlock on October 23, 2025 (36-month linear vesting schedule).

article-image

Insiders have the best information — markets should be willing to pay for it

article-image

The CFTC-regulated exchange is opening doors to crypto builders and traders through grants, partnerships, and new deposit options

by Blockworks /
article-image

DFS tells banking organizations to integrate blockchain monitoring tools to curb money laundering and sanctions risks

by Blockworks /
article-image

New short and long-term priorities include L1 gas boosts, ZK-EVMs, privacy reads, and a lean, quantum-resistant Ethereum

by Blockworks /
article-image

The new stBTC token redistributes Bitcoin gas fees to users, creating liquid yield without inflation or lockups

by Blockworks /
article-image

The reserve will collect protocol revenues to back W token, alongside new yield and unlock schedule

by Blockworks /