Using Paxos Settlement Service, State Street
and Credit Suisse can respond to the SEC request for pathways to
T+0 settlement
NEW
YORK, May 17, 2022 /PRNewswire/ -- Paxos,
the regulated blockchain infrastructure platform, has partnered
with State Street, one of the world's leading providers of
financial services to institutional investors, to integrate State
Street's custodial services into the Paxos Settlement Service. As
part of the pilot, State Street was able to simulate the settlement
and custody of shares on the Paxos platform and asset movements
with Credit Suisse more efficiently.
Paxos Settlement Service is a modern clearing platform built to
address the structural problems of opaque margin, slow settlement
and high costs impacting today's market participants. The private,
permissioned blockchain solution is designed to allow two parties
to safely settle securities trades through a modern clearing
agency. By leveraging Paxos Settlement Service for institutional
settlement, State Street was able to send settlement instructions
to Paxos for cost effective settlement while still delivering the
required messaging to interface with existing settlement
systems.
State Street, through its Digital and Alpha divisions, along
with Credit Suisse, delivered the workflow and system adjustments
to test the functionality of seamless same day (T+0) settlement.
The result highlighted the Paxos platform's flexibility and
readiness to immediately deliver T+0 settlement for industry
participants. Paxos can deliver T+0 settlement today while the
legacy infrastructure has a goal of achieving T+1 settlement in
2024.
Charles Cascarilla, CEO and Co-Founder of Paxos,
commented, "The Paxos Settlement Service will revolutionize core
market operations as our modern infrastructure improves efficiency,
reduces risk, increases innovation and provides transparency. State
Street is a market leader and their ability to easily integrate
demonstrates how the Paxos platform is interoperable with today's
systems and creates a pathway to the digital world. Market
participants need an environment that fosters faster, safer, fairer
and more open markets. Paxos technology shows how competitive
clearing solutions can positively drive the market forward."
Nadine Chakar, head of State
Street Digital, said, "Our team is incredibly pleased to have
collaborated with Paxos, Credit Suisse as well as State Street's
Alpha team on this exciting industry initiative to facilitate
seamless same day (T+0) settlement. State Street Digital was
created to help drive innovation and address the industry's digital
transformation, and this pilot is consistent with our firm's
broader focus on supporting clients across the front, middle and
back office. It also further validates that the use of blockchain
technology will help automate the life cycle of a trade, reduce
costs and could eliminate the need for the traditional
reconciliation processes used in today's settlement
environment."
Chris Rice, Head of Digital
Asset Markets at Credit Suisse, added, "We are
delighted to partner with State Street and Paxos on an initiative
that can potentially create financial benefits for our
clients. Credit Suisse is committed to innovation and
moving the industry forward by supporting the adoption of
efficient, low-cost digital banking services in public equities.
This collaboration marks continued progress in digital market
infrastructure, ultimately benefiting the broader market."
Paxos technology allows for continuous netting and settlement -
without the delays and inflexibility of the legacy system's batch
processing - and reduces cost and capital commitments.
Additionally, Paxos leverages a safe, efficient and transparent
margin calculation so there are no surprises to market
participants. To learn more about the Paxos Settlement Service,
visit the Company's website.
About Paxos
Paxos is the leading regulated
blockchain infrastructure platform. Its products are the foundation
for a new, open financial system that can operate faster and more
efficiently. Today, trillions of dollars are locked in inefficient,
outdated financial plumbing that is inaccessible to millions of
people. Paxos is replatforming the financial system to enable
assets to instantaneously move anywhere in the world, at any time,
in a trustworthy way.
Paxos uses technology to tokenize, custody, trade and settle
assets. It builds enterprise blockchain solutions for institutions
like PayPal, Interactive Brokers, Meta, Mastercard, MercadoLibre,
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 Oak HC/FT, Declaration Partners, Founders Fund, Mithril
Capital and PayPal Ventures. With offices in New York, London and Singapore, Paxos takes a global approach to
modernizing the financial system.
About State Street
State Street Corporation (NYSE:
STT) is one of the world's leading providers of financial services
to institutional investors including investment servicing,
investment management and investment research and trading. With
$41.7 trillion in assets under
custody and/or administration and $4.0
trillion* in assets under management as of March 31, 2022, State Street operates globally in
more than 100 geographic markets and employs approximately 39,000
worldwide. For more information, visit State Street's website at
www.statestreet.com.
*Assets under management as of March
31, 2022 includes approximately $73
billion of assets with respect to SPDR® products for which
State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts
solely as the marketing agent. SSGA FD and State Street Global
Advisors are affiliated.
Media Contact:
Rebecca McClain
bmcclain@paxos.com
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SOURCE Paxos