Paxos got a green light to settle assets on a blockchain

Paxos' permission

Paxos Trust Co., a blockchain firm that works with economic organisations, received permission to settle stock trades in real-time, which can become a real menace to the Depository Trust & Clearing Corp.’s half-century investment market dominance.

The US Securities and Exchange Commission gave the organisation green light to start a small-scale program with at least two broker-dealers to apply blockchain technology to send/receive shares and money once the trades are finished.

Paxos representative said that there are already two premier broker-dealer users of the blockchain: Credit Suisse Group AG and Societe Generale SA.

Charles Cascarilla, CEO of Paxos, said that this is a distinct method of settling agreements. He mentioned, that while using blockchain to develop the activity and effectivity of economic markets have experimented, the Paxos is going to be the front to settle real trades.

Cascarilla said that this is something significant, cause he doesn’t think anyone has had any genuine cases of real assets using blockchain.

The Paxos network unites investors directly to each other, so commerce is settled between them without the necessity for a central counterparty like the DTCC. In the DTCC, each side of the trade must arrange its parts, registering the assets obtained and marketed. In the Paxos project, no third party is included, which considerably decreases the time it takes to settle contracts.

The CEO of Paxos mentioned that the corporation believes blockchain can give a new process.

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