Paxos Launches Regulated Blockchain Securities Trading Platform

The Securities and Exchange Commission (SEC) sent Paxos a letter stating that it would not oppose the launch of a regulated securities trading platform.

The first organizations to join the Paxos settlement platform will be Credit Suisse and Société Générale. The platform will be launched on a private blockchain and will allow participating parties to carry out direct bilateral settlements of securities transactions. This will be the first regulated platform using the blockchain, which should allow the exchange of securities much more efficiently than traditional systems.

According to the head of Paxos Securities-related products and director of services, Melayna Ingram, the platform has been in development for more than two years. Although the heavy work with SEC began a year and a half ago, work on receiving a letter on non-opposition to launching the platform began 6 months ago.

“Paxos uses the SEC letter to launch our platform, as well as to understand the needs of market participants and their appetites,” Ingram said.

The platform will allow companies to exchange securities using new methods, and in this area, according to Ingram, nothing new has been created over the past 50 years. Paxos, Credit Suisse, and Société Générale worked closely together most of the time.

“They provided us with excellent feedback and a lot of comments, and were able to become the very first users of the platform,” said Paxos top manager.

Emmanuel Aidoo, Head of Digital Asset Markets at Credit Suisse, emphasized that the company is constantly looking for blockchain opportunities to improve both Credit Suisse’s business and customer experience.

“The settlement process in transactions with securities can be significantly optimized using the blockchain. Using the Paxos platform will be a significant milestone in the development of our digital asset markets strategy and will enable us to take advantage of new opportunities, ”said Aidu.

In early September, Paxos launched
Pax Gold stablecoin (PAXG). The company believes that such an instrument can attract new investors to the industry.