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      ABN AMRO Clearing to Join Paxos Settlement Service for Settling US Securities Trades

      Published: just now

      ABN AMRO Clearing to Join Paxos Settlement Service for Settling US Securities Trades

      September 20, 2021 - Paxos, the first regulated blockchain infrastructure platform, today announced ABN AMRO will become the sixth broker-dealer client to join the Paxos Settlement Service.

      Paxos Settlement Service is a private, permissioned blockchain solution designed to allow two parties to bilaterally settle securities trades directly with each other, with delivery-versus-payment settlement finality. The service represents the first live application of blockchain technology in the listed U.S. equities market. Paxos is operating a pilot phase of the service under No-Action relief from the staff of the U.S. Securities and Exchange Commission (SEC). Since initiating the service in February 2020, Paxos has continuously settled trades on a daily basis. Other clients of the service include Bank of America, Credit Suisse, Instinet, Societe Generale and Wedbush. With each additional broker-dealer, the benefits of the network increase, delivering greater savings and efficiencies to its participants.

      Greg Lee, Managing Director of Paxos, stated, "We're pleased to add ABN AMRO Clearing to our platform as we transform post-trade infrastructure in the securities industry. Paxos has demonstrated an ability to innovate and deliver compelling enterprise-grade solutions in a complex and high-value market. By working closely with our industry clients, we've been able to streamline back office processes, offer scalable same-day net settlement and enable opportunities for business development. We believe blockchain technology will deliver innovation in clearing and settlement that will benefit the industry."

      Paxos is applying for full clearing agency registration with the SEC. If granted a clearing agency registration by the SEC, the Paxos Settlement Service plans to provide the industry with greater flexibility around their settlement cycles, ranging from T+2 to T+0, optimised according to their trading and asset management strategies. Additionally, Paxos will run multilateral netting processes in real-time to ensure efficient, fast and transparent net settlement of transactions.

      Paxos uses technology to tokenise, custody, trade and settle assets. It builds enterprise blockchain solutions for institutions like PayPal, Bank of America, Credit Suisse, Societe Generale and Revolut. Paxos is a top-funded fintech company with more than $540 million raised from leading investors including Bank of America, Oak HC/FT, Founders Fund, Declaration Partners, Mithril Capital and PayPal Ventures. Paxos has offices in New York, London and Singapore.

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