Paxos Trust Company, a New York-regulated financial institution that digitizes and mobilizes assets, today announced Societe Generale is the third broker-dealer client using Paxos Settlement Service to settle U.S. listed equity trades.
Paxos Settlement Service is a private, permissioned blockchain solution designed to allow two parties to bilaterally settle securities trades directly with each other. The service represents the first live application of blockchain technology in the listed U.S. equities market. Paxos is operating the service under No-Action relief from the staff of the U.S. Securities and Exchange Commission (SEC). Since the initial launch in February, the first two participants, Credit Suisse and Instinet, have been using the technology to settle securities trades on a daily basis. With each additional broker-dealer, the benefits of the network increase, delivering greater savings and efficiencies to its participants.
Charles Cascarilla, Chief Executive Officer and Co-Founder of Paxos, stated, “We’re transforming post-trade infrastructure in the securities industry. The Paxos Settlement Service can reduce ongoing costs associated with settlement and unlock capital tied up in the legacy settlement system. The No-Action relief phase gives us the opportunity to grow our network and refine the service with early adopters while we build toward a scaled solution that delivers long-term benefits industry-wide.”
Jeffrey Rosen, Chief Operating Officer, Americas Global Markets at Societe Generale, added, “We believe that by streamlining equities settlements with the Paxos Settlement Service we’ll be able to deliver meaningful efficiency in our settlement operations in the long-term. We’ve worked closely with Paxos to tailor the platform to our unique workflows and feel this is an important step forward to evolving market structure and optimizing the trading life cycle.”
Paxos can operate the Paxos Settlement Service with a total of seven broker-dealer clients under No-Action relief.