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Bank of America Now Uses Blockchain for Settling Stock Trades

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Mon, 05/17/2021 - 14:39
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Alex Dovbnya
Bank of America is now settling stock trades on a blockchain
Bank of America Now Uses Blockchain for Settling Stock Trades
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Bank of America has joined the blockchain-based settlement network for U.S. equities that was developed by regulated crypto company Paxos, Bloomberg reports.

This is the third bank to try out the regulator-approved Paxos Settlement Service (after Credit Suisse and Nomura). Presently, its use is limited to internal transactions pending regulatory approval.

The service allows two parties to settle equities trades in mere minutes instead of days. It was greenlit by the U.S. Securities and Exchange Commission back in October 2019.

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Paxos CEO Chad Cascarilla claims that onboarding clients like Bank of America is important to push the technology's mainstream adoption:

The way we get mainstream adoption is by having firms like Bank of America join in and feel comfortable.

Paxos runs its own private version of the Ethereum blockchain.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.