Paxos Trust Company seems to be ready to launch the liquidation of shares in the traditional world using a process based on its Blockchain, and which also complies with the regulations. After the letter “NO ACTION” response from the Securities and Exchange Commission of the United States 🇺🇸.
Paxos Trust Co, a regulated financial institution based in New York City, has confirmed that the firm will launch a settlement platform based on Blockchain technology for a limited number of shares listed on the US stock market.
The company that also governs its Stablecoin PAX which is also regulated, received great relief upon receiving the “NO ACTION” letter, this Monday. This will allow Paxos Trust Company to capitalize transactions on a Blockchain platform for the exclusive use of certain authorized Brokers such as Credit Suisse and Société Générale, which will be the first two companies to enjoy these services in a private blockchain network and authorized.
The Director of Product Management in Paxos, Ingram Melayna said:
“We have been working on this for approximately 18 months, and have been working with many large companies on the sale and purchase side, as well as with other suppliers to work on the initial design and approach to bring it to market. “
As stated, the service will allow the parties to settle bilaterally without a third party any securities transaction.
Paxos’ team said that this is the first time in half a century that US stocks will be liquidated outside a traditional settlement system.
Credit Suisse also commented saying:
“We believe that the securities settlement process can be greatly optimized using Blockchain technology, and with Paxos Settlement Service we will benefit first hand from being able to reach the honeys and efficiency that blockchain can demonstrate.”
Although it is true that Paxos has been working for more than 18 months to get the project afloat, the company was forced to pause everything and move all its machinery of lawyers so that the SEC gave the green light to the project.
Paxos CEO and co-founder, Charles Cascarilla commented:
“Paxos is using this non-action letter as an opportunity to launch this product and also and as an opportunity to validate our understanding of how Blockchain technology works within traditional systems, in addition to what participants will need from us, as well as the market appetite for these products.
Our Front office and trading have had a lot of improvements in their speed and level of sophistication and finally we have it, so this is really this is a very significant step for the industry. The back office aligned with the front office and, ultimately, opened a path for companies to carry out the necessary digital transformation to enter this new world. ”
At the moment Paxos will only work with these 2 companies that we mentioned, but the crypto firm has also communicated with other firms around the United States 🇺🇸, and according to reports, they were waiting for an affirmative response from the SEC.
Monday’s letter is the third one granted by the SEC this year to an encryption company, and the first approval of share liquidation.
The regulator has already granted TurnKey Jet and Pocketful of Quarters a no-action relief to start selling tokens, provided those companies have complied with strict restrictions.