Bank of America (BoA), the second largest American bank by assets, announced a partnership with a startup Paxos – the bank joined the settlement network for securities on the blockchain.
Using the blockchain, the Paxos Settlement Service platform allows you to complete transactions for the purchase and sale of securities in just a few minutes. According to Kevin McCarthy, BoA’s head of finance and settlement, the bank has been “testing internal transactions for several months now” and will provide customers with access to the new platform after obtaining a license to launch clearing.
Usually, when buying and selling securities in America, they use the services of the Depository Trust and Clearing Corporation (DTCC), which usually takes a couple of days to confirm transactions. With the Paxos platform, transactions take minutes, McCarthy noted, so the collateral for the transaction can be returned to the owner the very next day. Thus, the profit ratio will increase.
In late April, the Paxos startup received a conditional banking license from the Office of the Comptroller of the Currency (OCC). It will create a separate federal regulated trust.
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