Paxos Adds Wedbush Securities in Quest for Same-Day Stock Settlement

Credit Suisse, Instinet and Societe Generale are also part of the program, which is meant to shrink stock settlement times to hours, not days.

AccessTimeIconJun 17, 2021 at 1:04 p.m. UTC
Updated May 9, 2023 at 3:20 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.

Paxos recently tested same-day settlement of trades on the blockchain, a practice that looks all the more compelling in light of the share-trading fiasco involving the Wall Street Bets movement and trading platform Robinhood.

“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.

Meanwhile, Paxos is applying to become a clearing agency with the SEC, which would make the cryptocurrency custodian one of just two clearing agencies in the U.S., joining the Depository Trust & Clearing Corporation (DTCC). 

“U.S. equities settlement is opaque and relies on outdated technology,” Charles Cascarilla, CEO and co-founder of Paxos, said in a statement.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.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.