Credit Suisse and Societe Generale Adopt Blockchain Settlement Platform for US Equities

Credit Suisse and Societe Generale will be among the first users of a blockchain-powered settlement system after the platform was given the go-ahead by the Securities and Exchange Commission (SEC). Post-trade start-up Paxos received ‘no-action relief’ from the SEC to launch Paxos Settlement Service, which will soon begin processing trades for a limited number of brokers in certain US equities, The Trade reports. Paxos described its platform as a private, permissioned blockchain solution that allows for direct and bilateral settlement between two parties. The platform aims to make settlement of transactions more cost-efficient and secure than legacy systems and processes. It will also be the first live application of blockchain technology for US equities, Paxos added. CEO and co-founder of Paxos, Charles Cascarilla, added that the blockchain-based platform is an important step in reimagining post-trade infrastructure, at a time when the US equities business is challenged with economic pressures and economic pressures. Founded in 2012 as Bitcoin exchange and custodian itBit, the start-up rebranded to Paxos where it shifted its business to focus on providing services using blockchain. Last year, the New York-based FinTech firm raised $65 million from a series B round of funding, after securing investment from venture capital firms RRE Ventures and Liberty City Ventures.