Wedbush Securities has joined the Paxos Settlement Service, a post-trade settlement platform for U.S. securities that uses blockchain technology for faster and more transparent results.
The investment firm, with $2.4 billion under management, has been bullish about blockchain and cryptocurrency since back in the early days, as well as being a longtime innovator in securities clearing.
Wedbush joins Credit Suisse, Instinet and Societe Generale in the Paxos program, which is built using a permissioned fork of Ethereum that allows two parties to bilaterally settle securities trades directly with each other.
“It’s crystal clear that blockchain technology is destined to completely modernize securities settlement and custody,” Wedbush CEO Gary Wedbush said in a statement.
Paxos’ stock push
Paxos currently operates its blockchain-based settlement system under a “no-action” promise from the U.S. Securities and Exchange Commission (SEC) – basically when the regulator accepts a common-sense approach to something that is not technically legal.
“U.S. equities settlement is opaque and relies on outdated technology,” Charles Cascarilla, CEO and co-founder of Paxos, said in a statement. “The Paxos Settlement Service reduces risk, enables greater trading liquidity and provides ownership transparency, which will revolutionize securities markets.”
Paxos closed a $300 million Series D in April that valued the firm at $2.4 billion.
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