Paxos, the regulated blockchain infrastructure platform, has partnered with State Street to integrate State Street’s custody services into the Paxos Settlement Service. As part of the pilot, State Street was able to simulate the settlement and custody of shares on the Paxos platform and asset movements more efficiently. State Street was able to send settlement instructions to Paxos for cost-effective settlement while still delivering the required messaging to interface with existing settlement systems. Along with Credit Suisse, State Street delivered the workflow and system adjustments to test the functionality of same day (T+0) settlement.
Paxos Settlement Service is a clearing platform built to address the structural problems of opaque margin, slow settlement and high costs impacting today’s market participants. The private, permissioned blockchain solution is designed to allow two parties to safely settle securities trades through a modern clearing agency.