Paxos Trust Co., a blockchain-focused company that offers a platform for settlement, assets, and payment services, has welcomed Bank of America as a new member of its stock-settlement network, Bloomberg has learned, citing Kevin McCarthy, Head of Financing and Clearing at the Charlotte.
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McCarthy says the second-largest US bank has been conducting "internal transactions for the past few months." He also added the bank will offer the service to its clients if it gets an approval as a clearing agency.
"We can determine the settlement cycle down to T+0. The return-on-assets in this business would improve, which has been a challenge," McCarthy emphasized.
However, the move potentially threats the dominance of the Depository Trust & Clearing Corp in equity markets, Bloomberg says. Currently, only trades logged by DTCC by 11 am are eligible to be settled that day. This leads to large delays for approximately 75% of all stocks traded on a given day, said Paxos CEO, Chad Cascarilla.
As iHodl earlier reported, Paxos received an approval of the application to charter Paxos National Trust, New York. However, the Office of the Comptroller of the Currency (OCC) granted preliminary conditional approval only. The regulator emphasized that final approval and authorization for the bank to open will only be granted after "all pre-opening requirements are met."
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