The decision follows a pilot test in which Credit Suisse and Instinet used its platform for same-day trade settlements. According to Paxos, the trades marked one of the first live application of blockchain technology for equities markets in the US.
Currently, it takes two days to settle a trade. However, calls to shorten this time gained momentum in the wake of the retail trading frenzy that sent a handful of stocks like GameStop Corp up as much as 1,600%. The Depository Trust and Clearing Corporation (DTCC) said reducing the settlement time to one day would reduce market risk and lower margin requirements, especially during particularly volatile market conditions.
The US-based company said it hopes to secure clearing agency registration in 2021.
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