Paxos Settlement Service is a faster and more efficient way to settle stock trades
Wedbush Securities, one of the nation’s leading independent financial services providers, is pleased to announce it has joined the Paxos Settlement Service, the blockchain stock settlement network powered by Paxos Trust Company.
Paxos is the first regulated blockchain infrastructure platform that uses technology to tokenize, custody, trade and settle assets.
Paxos Settlement Service is a private, permissioned blockchain solution designed to allow two parties to bilaterally settle securities trades directly with each other. This blockchain enabled network is interoperable with the legacy clearing system and can facilitate settlement on any time cycle. Paxos leverages smarter margin calculations to free up capital and protect against risk. This reduces transaction settlement fees by 70% and significantly reduces clearing capital with a modern margin approach.
“Wedbush has long been an innovator in securities clearing services.” stated Gary Wedbush, CEO of Wedbush. “It’s crystal clear that Blockchain technology is destined to completely modernize securities settlement and custody. Paxos is way out in front in the evolution, and we are thrilled to be on board with this exciting new platform.”
Charles Cascarilla, CEO and Co-Founder of Paxos, commented, “US equities settlement is opaque and relies on outdated technology. The Paxos Settlement Service reduces risk, enables greater trading liquidity and provides ownership transparency, which will revolutionize securities markets. We’re pleased Wedbush is joining our pilot program and believe their participation will facilitate important network benefits for all participants.”
Wedbush joins Credit Suisse, Instinet, Societe Generale and other leading US banks in the Paxos Settlement Service, which currently operates under No-Action Relief from the Securities and Exchange Commission staff. Paxos will apply for full clearing agency registration and will grow the network to include more market participants.