- Bank of America Corporation joins the network made by Paxos Trust Company.
- The move will allow Bank of America to settle stock trades within minutes.
- This will be made possible due to the implementation of blockchain technology.
Wall Street is slowly, but surely adopting blockchain technology. Just recently, the Bank of America Corporation joined the Paxos Settlement Service created by the Paxos Trust Company. The service leverages blockchain technology to enable stock trade settlements within minutes instead of days.
According to the official announcement, the Bank of America has already begun facilitating transactions internally in the past few months. When they get approval as a clearing agency, the firm will proceed to offer the service to their clients.
In an interview, Charles Cascarilla, Paxos CEO and Founder mentioned,
Companies are coming to us to supply them with a lot of totally different capabilities
Back in 2019, the Securities and Exchanges Commission (SEC) approved the Paxos Trust Company to start this program that settles equity trades.
In the past, big firms like Credit Suisse Group AG and Nomura Holdings Inc. have already joined the network. Now, Bank of America Corporation — the second-largest US-based bank, joins the fray.
In the past month, Paxos gain a whopping $2.4 billion in valuation after big firms like PayPal, Credit Suisse Group AG, and many others contributed to a $300 million funding round.