February 26, 2020 by Clementine
The company Paxos, in collaboration with Credit Suisse and Instinet, intends to offer an alternative in the process of settlement of the shares listed in the stock exchange through the deployment of technology Blockchain.
A settlement service innovative
Through an architecture of type blockchain, Paxos intends to simplify the various operations relating to the trading of shares. Thus, Paxos will allow the exchange for almost instant money, and listed securities on Wall Street via a blockchain private.
“This is the first time that the Blockchain is used in a real environment, the first time that u.s. equities are settled outside of the system, DTC/NSCC (the only clearing service used on Wall street),” said a spokesperson of Paxos.
This service of clearing and settlement developed by Paxos has got the green light from the SEC in 2017. However, the Blockchain is still in its pilot phase, according to the spokesperson of Paxos.
“We call it a pilot because we are allowed to do it with a number and a limited volume of participants and a limited list of titles allowed,” explained the company.
A major step forward for the financial market
Emmanuel Aidoo, head of markets of digital assets at Credit Suisse, said in a press release:
“We work in close collaboration with Credit Suisse and Instinet to develop a solution that can provide long-term financial benefits and, together, we refine the system in a real environment. “
A clearing service traditional requires a dozen intermediaries to execute purchase orders and sales on a stock exchange. In contrast, the new solution Blockchain developed by Taxos does not require any intermediary of the market, “thus providing an efficiency gain” in the process of share trading, according to a leader of Instinet Holdings.
What do you think of the transition from traditional exchanges to the tokénisation assets ? Share your thoughts in the comment section below.
(Be the FIRST to vote)
Passionate about the universe geek, Clementine finds the news more interesting and involved in their drafting.